iphone 3GS displaying icons very largely.......

You have zoom on. Double tap with three fingers and then read the manual for more info... http://manuals.info.apple.com/enUS/iPhone_UserGuide.pdf

If you select erase all content and settings on your iPhone, this does exactly as provided - it will erase all content and settings - everything but the firmware/included software.

If you restore your iPhone with iTunes as a new iPhone or not from your iPhone's backup, the same applies.

Contacts are designed to be synced with a supported application on your computer. With Windoze, this can be with Outlook 2003 or 2007 along with syncing calendar events, or with Windows Contacts for syncing contacts only - the address book used by Windows Mail with Vista.

If you aren't currently using a supported application on your computer for contacts - the address book is empty, before syncing contacts with the application enter one contact in the application on your computer. Make this contact up if needed, which can be deleted later. This will provide a merge prompt with the first sync for this data, which you want to select. Contacts between the two will be kept synchronized with following syncs. Syncing contacts with a supported application on your computer is selected under the Info tab for your iPhone sync preferences with iTunes. You can do this before restoring your iPhone with iTunes which will also give you access to your contacts on your computer.

oh my gosh. I have had an iphone since two weeks after it came out. I did not know this feature. I had the same problem...knew I would find the answer here. Thanks very much.