Do the contacts store on the SIM?...

Hi,
See if I can explain this clearly. I had the first generation iPhone, disaster. Got the new 3G and it is leaps and bounds better. I imported my contacts into my new 3G using a SIM card from another phone, then re inserted the SIM that came with the 3G.
Here's the question, when I hook up the 3G to iTunes to sync is it going to put all the old contacts and settings from my old first generation iPhone into my new 3G? I do NOT want it to do that. But I do need to sync my new 3G because I cannot use the Apps store until then.
Thanks

If you have chosen not to sync them with your computer, then they are not on your computer. The iphone is not designed as a stand alone device. It is designed to sync with your computer. If you do not sync with your computer, what are you going to do if your iphone crashes - your information will be gone. You should sync your iphone to your computer.
The iphones manual describes the sync process.
Page 10:
"You can sync contacts with applications such as Mac OS X Address Book, Microsoft
Entourage, Yahoo! Address Book, and Google Address Book on a Mac, or with Yahoo!
Address Book, Google Address Book, Windows Address Book (Outlook Express),
Vista Contacts, or Microsoft Outlook 2003 or 2007 on a PC. (On a Mac, you can sync
contacts with multiple applications. On a PC, you can sync contacts with only one
application at a time.)
If you sync with Yahoo! Address Book, you only need to click Configure to enter your
new login information when you change your Yahoo! ID or password after you’ve
set up syncing."
http://manuals.info.apple.com/enUS/iPhone_UserGuide.pdf

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