Do I need internet for iphone restore to factory settings opetion?

Question

I have an iphone 2G with 2.2 firmware, While i was trying to load some songs using itunes, suddenly a msg pops up saying itunes is not able to recognise the iphone.
It asks me to restore my iphone to factory settings. However, i have some unanswered questions bugging me..
->do i need an internet connection for doing this?
->what actually are affected by restoring to factory settings [apart from songs, contacts, calender, photos]
->do i need to configure my service provider information, etc again.
->is there any other way to come out of this problem apart from restoring to facory settings? [Does format of PC or reloading software work]?
Please help me..

Answer 1

->do i need an internet connection for doing this?
If you have already installed firmware update 2.2 with iTunes on this computer and the 2.2 download has not been deleted from your computer, an internet connection is not required to re-install 2.2 - which is what a restore with iTunes does, but an internet connection will be required to complete the installation process. A carrier locked iPhone is checked with the designated provider to confirm the iPhone is activated with the designated provider.
->what actually are affected by restoring to factory settings apart from songs, contacts, calender, photos
When doing a restore, your iPhone will be completely erased followed by the current firmware version being re-installed. If your iPhone was sold as carrier locked, your iPhone needs an internet connection to verifyAfter 2.2 is re-installed, you will be prompted to restore your iPhone from your iPhone's backup, which is created and maintained by iTunes as the first step during the sync process. The backup includes data such as most iPhone settings, email account settings, contact info, SMS messages, notes, recent calls, call favorites, photos in the Camera Roll, and 3rd party app settings and data created and stored by a 3rd party app acquired from the iTunes app store. This must be followed by a sync to transfer all data not included with your iPhone's backup, such as all iTunes content and photos transferred from your computer to your iPhone.
Contact info, calendar events, and Safari bookmarks are designed to be synced with a supported application on your computer. For contact info and calendar events with Windows, this can be with Outlook 2003 or 2007. For contact info only, with the address book used by Outlook Express with XP or by Windows Mail with Vista - the name change for OE with Vista.
Photos in your iPhone's Camera Roll should be imported by your computer as with any other digital camera. Although photos in your iPhone's Camera Roll are included with your iPhone's backup, it isn't a good idea to depend on your iPhone's backup alone for these photos.
->do i need to configure my service provider information, etc again.
Whatever is was you did when you first activated your iPhone will likely be required again.
->is there any other way to come out of this problem apart from restoring to facory settings? Does format of PC or reloading software work?
It doesn't sound like it. If you have tried an iPhone reset with no change, which is done by pressing and holding the home button and the sleep/wake or on/off button simultaneously until you see the Apple logo and then release - ignoring the slide to turn off prompt when doing so, you have no other option. Reformatting and re-installing software on your PC will not affect an error with your iPhone.