iPhone Backup Restore questions

Although iTunes backs up most of your iPhone and iPod touch settings, downloaded applications, and other information (Contacts, calendars, notes, images in the Camera Roll), your audio, video, and photo content are not included in the backup.
From Apple Support site: http://support.apple.com/kb/HT1414
powerbook g4, iMac 20 Mac OS X (10.5.1) airport express, iphone, ipod, ipod touch

The backup that is created and maintained by iTunes stores data such as most iPhone settings, email account settings, SMS messages, notes created with the Notes application, recent calls, call favorites, data created and stored by 3rd party applications, and photos captured by your iPhone.
No need to backup iTunes content since your iTunes content remains on your computer and should be included with your computers backup.
Regarding contact information and calendar events, the iPhone is designed to be synced with a supported application on your computer. The exception to this is with an Exchange account or MobileMe account, which provides for over the air syncing with this data.
With Vista, you can sync contact information and calendar events with Outlook 2003 or 2007, or Windows Contacts for contact information.
A Restore completely erases your iPhone followed by re-installing the current firmware version. After the current firmware version is re-installed, you are prompted to restore your iPhone from your iPhones backup (which is the default selection), or as a new iPhone or not from your iPhones backup.
This must be followed by a sync with iTunes to re-transfer data not included with your iPhones backup such as all iTunes content, 3rd party applications, contact information, calendar events, bookmarks, and photos transferred from your computer to your iPhone.
 PowerBook G4 17-inch/1.67GHz/2GB RAM Mac OS X (10.5.5) 7200rpm-100GB HD,  iPod w/Video 30GB,  iPhone 3G 16GB