When I restore my iPhone does it have to be set up as a new phone for the 2.0 uprgrade?

no. wait I dunno about the jailbroken part. nvm. Lamest answer ever.

It will erase everything, you can read a little bit (but what you are looking for) about it here.

EDIT:It’s in the middle paragraph

@monsoon- You’re too hard on yourself. Your answer was the greatest lame answer ever. Lurve for you, my friend.

@AstroChuck, Haha. Thanks. I wrote no, and then read the fine print, and couldn’t figure out how to delete, and there was born said lame answer.