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Every time I did this I had to restore 5.1.1 to new then upgrade that way. That was with the betas but I'm not sure if this is how it is with the release now or not.
 
I used another laptop that had iTunes 10.6 and it worked fine, restored to IOS 5.1.1, on my main laptop I had 10.7, I think that was the problem, couldn't even restore to IOS 5.1.1 there.

edit: now i'm back on my main laptop to upgrade to IOS 6 and it gives an error, I will update OTA.
 
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I used another laptop that had iTunes 10.6 and it worked fine, restored to IOS 5.1.1, on my main laptop I had 10.7, I think that was the problem, couldn't even restore to IOS 5.1.1 there.

edit: now i'm back on my main laptop to upgrade to IOS 6 and it gives an error, I will update OTA.

You should DFU and restore as NEW instead, seems you got stuff lingering around. iTunes 10.7 shouldn't have a problem restoring to 5.1.1 yet, maybe check TU settings.
 
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