If i reset my iPhone 4 wi it erase all my contacts? How can i send photos via messaging?

I have bought an iPhone 4 from a friend of mine and I can't send text with photos like I want to. I also try to download app's and games but t tells me I need to download ios updates but it won't allow me. Help I love my new phone but can't download anything.

A reset has no affect on data.
A restore from backup will put the device in the exact same state it was in when the backup was created.
A restore as new will put the device in a fresh, out of the box state.
Read the User's Guide to learn how to use the device then if you still have questions, you'll be able to clearly communicate what those problems are.
FYI, SMS and MMS are carrier features, contact the carrier to troubleshoot.

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