Originally Posted by Buffy
Gotcha - it's not as bad as I thought, then. Good!
Again, there's a lot of confusion surrounding this. Let me try to clarify further:
When you sync with iTunes, a backup of all the data on your iPhone (except media) is saved with each sync. This is what you'll get back if you do a "restore from saved backup".
The problem is, you don't wanna do that. You need to "restore as new iPhone" so you're not going to get that info back (contacts, calendar, bookmarks, settings, etc). This is why you need to set up EXTERNAL programs with which to sync. In XP land, Outlook and Windows Address Book is pretty much it, on the mac you can sync with iCal and Address Book. This is set on the "info" page of your phone when you plug in.
If you set up these external sync partnerships, you can always restore as a new iPhone, and then resync your media, contacts, schedule... pretty much everything except system settings and (obviously) jailbroken stuff.
Does this make sense?