It means do not sync a newly hard reset phone with activesync. You've just reminded me of a horror story. For some reason in activesync, the computer will think that the newly hard reset device is "updated" info, and it will begin to delete all of your contacts. LOL. Smart. Real smart, microsoft.
Best bet is to export your contacts and such to have a file(since you like backups and all
. Double insurance is to use pimbackup to backup the contacts on the phone to the storage card. Then, once you hard reset, you want to run the backup b4 syncing to the computer. I believe SPB is trying to save you from losing all your contacts.
Hope that helps.