There's an app that comes with your phone called backup and restore. Use it.

 

If you sync your contacts to your gmail that should do it. Its in the setting I do believe but dont have my phone to hand to tell you where it is exactly

 

You can copy your contacts to your SD card just to be safe... I have seen complaints that the back up and restore thing doesn't always save the contacts. This was apparently with the new version released by SE for the update. I do wonder if they had sync ticked for contacts, which on the current backup and restore means that contacts aren't saved. Being the cautious type I would get them saved in as many places as I can cos to me they are the most important commodity on my phone.

 

I use the SE sync option to backup contacts and you can also view them on Media Go if your phone is lost, flat battery blah blah blah, and for your book marks I have always used Dolphin that has a plug-in app allows you to save your bookmarks to the SD card.

If you use ADW dont forget to go into the settings and back up your settings and layouts and when you reinstsall ADW on the 2.1 it will be just the way you left it

 

Ahem, did I mention me being the over cautious type... SE synced but now turned off on phone but they are still in the cloud, Google Mail and still syncing, saved to SD card and also exported from Google to my Outlook account on my netbook. So barring an asteroid striking planet earth and wiping out the population, my contacts should be somewhere.

I will now go away and be sad and tragic in my strange little world!

 

Be careful with the default app, a good few people have had trouble restoring after updating to 2.1, so make sure to use something else too.

 

I was not on about the SE back up app, but the sync option in the settings menu "Accounts & Sync".

 

I never had good luck with SE sync. It always did the opposite of what I wanted. I had my contacts wiped out every other day...
I switched to Gmail and haven't had a problem since...
just saying...