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Originally Posted by nikeball
If your iPhone was "backed up" before you won't lose anything. Saves all settings and stuff. It takes awhile to restore though. You will probably need to set aside 30mins - 1 hour. It transfers everything back onto your phone.
I tried this as well..bc it was suggested on other forums but it did not work. Hopefully with iTunes 8 coming out it fixes it.
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Did you ever fix your 3rd party app problem?
My wife's phone was running 2.0, and she updated to 2.1 last night, and then her apps stopped working. They start and then immediately close. I haven't had a chance to play with it yet.