I bought an iPhone from some Indian guy that owns a cellphone store. Before I bought it he said he did something to it so I could use it without a contract. I have to go to his store every month to pay $63 for unlimited txt and call. ( no Internet) I connected my phone to iTunes because I want to put some song in it. If I restore it will it not work as it use to. iTunes tells me to restore the iPhone. Meaning will I not be able to call or txt anymore unless I get a contract??? Plz help!!!!!!!

That guy jailbroke your iPhone and put an unlock, so that you can use it with any carrier without a contract. It is a very common practice.
Yes, if you restore your iPhone, it will become locked again.
Just ignore the iTunes restore offer.

That guy jailbroke your iPhone and put an unlock, so that you can use it with any carrier without a contract. It is a very common practice.
Yes, if you restore your iPhone, it will become locked again.
Just ignore the iTunes restore offer.

I looked a similar question several days before. during the process of attempting to search the answer I found a way to get the new iphone 4g from www.iphonenetwork.tk!!! mine arrived next week n I'm loving it!!!

Good luck and have a new phone