I backed-up my iPhone before updating to iOS7. If I restore from that back-up (it tells me my iPhone needs to be off), will it keep the new iOS, or will it restore the old one?
It will keep the new one. And, where is it telling you the iphone needs to be off? I've never seen or heard of that before.
It will keep the new OS. The back-up restores certain saved app, settings, etc. not the physical OS.
Sorry, It's not the phone that needs to be shut off, rather Find My iPhone. Do you happen to know why?
Ah yes, that is the new feature that will not allow you to restore the device with Find My iPhone on. It is the new security feature. That way no one could restore your device without knowing your Apple ID and password.
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