Right i have an unlocked 1.1.1 iphone and have read that it works with the new itunes (7.5) so i can just plug it in and its all sorted?

Also if apple decide to unlock it to any network is there any way of restoring the iphone to how it came, without any of the hacking stuff on it so that i dont have to worry about it fucking up everytime there is a new firmware / itunes update?