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configuring an iphone 4
Originally Posted by crossfire3636
How did he backup his current data or the data he allegedly wants restored?
He wants to restore the data of the phone.
That is correct. You will have to restore it as new or use one of the backups saved via iTunes on the computer it is currently connected to.
I plugged it in to a computer and I was asked to either start a new phone or back up from another phone that HAS been connected to the computer before.
If I set the phone up as a new phone, would I lose all data, on the phone?
Does your friend have an iCloud account? If so and if iCloud backup is enabled on the device, he can restore from a previous iCloud backup. Without a previous backup, either via iCloud or iTunes, a restore will not do him any good except to restore it back to a native state as in the way it was when it was purchased.
What's the best way to restore a phone that has not been associated with itunes yet?