The third challenge was to synch my iPhone with my Mac (if you use a PC it'll be roughtly the same). The synch is done through "iTunes" app. You cannot use iSynch (bluetooth synch app on mac).
So what you need to do is:
1. Install iTunes (if you do not already have one)
2. Plug you iPhone using the connection cable (for USB port) that came with it.
3. On Mac this will automatically open iTunes for you (I suspect that on PC you will need to do it manually)
4. The wizard will prompt you for all the standard synch questions (but do not worry you can change that any time afterwards).
Here is example of my setup:
Section A: shows that iPhone that you have connected to Mac/PC
Section B: shows all the different synchronization configuration tabs
Section C: force synchronization (i.e. do it manually, now!)