these apps are ones ive downloaded from the apple store, ...
Transfer Purchases > http://support.apple.com/kb/HT1848
i just got my sim card put into an iphone 4s i bought off craigslist. i made a new itunes account for it. i havent plugged it into my computer yet but ive been using it for about a week, which means theres apps on it already. if i click set up as new iphone, my guess is that it will erase everything on my phone, which i dont want. what will happen if i click "restore from this backup: ipod"? i want to have my phone connected to my computer soon so i can back it up, but i dont want to lose all of my stuff. help!
Those apps that are not from Apple but from the previous owner should be deleted. Read App Store's Terms and Condition.
You should configure as a new iPhone in Settings > General > Reset > Erase All Content & Settings.
Yes, you will lose all content on the iPhone but you later sync your content back manually.