First of all, when I plug my iPhone in, it comes up with either set up as a new phone, or restore from a backup. The only problem with this is that I don't want to do either (as I'll have to re-sync all my music etc), so is there any solution for that? Second problem is, of course if I have to set it up as a new phone, or restore from a backup, then I'll lose recently added contacts. Is there anyway to get these off my phone if I have to do this (I can't sync remember!!). BTW: I'm running 1.1.4 unlocked, and this has only happened recently, so I don't know whether an app has done this or what?
You can set up as new. Your recent contacts will still be on your phone. When you try and sync them choose the option to "merge" the contacts on your PC with those on your phone and you won't lose them.