I just went through this. If you have to hard reset your phone you may not remember all of the apps you have purchased. One thing you can go is go to the Android Market and hit the menu button. Select My apps (or Downloads) and it should list everything you have purchased.
I had to do a hard reset a couple of months after I purchased the (original) droid. Everything came back automatically, including the purcased apps (and of course google contacts0. Thought that was slick!
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