As I have said in another thread, when I bought my phone at Target off an upgrade swap, the Target rep had the machine that transferred my old contacts and pics to the new 5. When I go home, plug phone into PC, Itunes is forcing me to "setup phone as new" or "restore from backup". My phone is just fine the way it is though. Have any of you skipped this step--just NOT been backing up your phone? My sisters and mom (like myself not too tech savy) haven't done it and have had their phones about a year. Are we setting ourselves up for trouble?