When restoring your iPhone, you will have two options.
Restoring your iPhone from your iPhone's backup (which is the default selection), or restoring your iPhone as a new iPhone or not from your iPhone's backup, which must be manually selected.
Your iPhone's backup includes data such as most iPhone settings, email account settings, contact info, SMS messages, notes, recent calls, call favorites, photos in your iPhone's camera roll, and 3rd party app settings and data created and stored by a 3rd party app.
iTunes creates and maintains this backup, which is done at the first step during the sync process if any of the data on your iPhone that is included with your iPhone's backup has changed since the last sync.
It is possible that your iPhone's backup may have a problem such as corruption and can't be used when restoring your iPhone with iTunes.
You shouldn't depend on your iPhone's backup alone for photos in your iPhone's camera roll. These should be imported by your computer regardless as with any other digital camera, but especially before restoring your iPhone with iTunes.
You can manually update your iPhone's backup, but if you sync your iPhone with iTunes immediately before doing a restore, your iPhone's backup will be updated if needed.
Message was edited by: Allan Sampson