I have a 1.1.2.OTB jailbroken. I'm entering my contacts info into the phone, even though I can't make a call. My question is what happens to my contacts if and when a sw unlock becomes available. Will I lose all my contacts?

thanks,

If you restore your firmware youll lose all your contacts and everything saved on your iphone.
If you make some kind of upgrade or if you install for example anysim that wont delete your contacts.
But I would suggest to install MS outlook and synchronise contacts with it and then stay calmed for the rest of your life

just simply sync w/outlook or adress book.