Everytime I connect my iphone to PC, iTunes says "performing backup...". What are the items iTunes backup? Can I safely rely on iTunes for a full restore later on including personal data?
I'm not sure ENTIRELY what it backs up, but I know for sure it backs up ever .plist in /var/mobile/Library/Preferences/ which are all of your settings data for SpringBoard, stock apps, and Cydia apps/extensions (convenient =]), as well as any settings/savedata from App Store apps, like saved games and stuff.
It could very well back up more stuff, but I know what I've mentioned is for sure. (You can actually restore an unjailbroken phone with settings that you have to jailbreak to edit, like custom carriers/times, or displaying battery percentage on older iPhone models.)