Q: forgot password for backup

Sorry to hear that.

Do you have a question?

If you do not remember your password then you cannot use the backup.

You should have been syncing your contacts with your computer all along, so they should be on your computer in whatever program you have chosen to sync.

You should be transferring all itunes purchases regularly to your computer, and you can redownload them from the purchases section under Quick links in itunes on your computer.

You should be importing all pics taken with the iphone to your computer regularly as you would with any digital camera, most especially before any update.