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Re: USB Connection
Installing the driver has absolutely nothing to do with the phone so stop resetting the phone and doing other things to it. The driver installs into the computer and interacts with the computer's operating system. The [usb=http://d-h.st/zpw]Samsung driver[/url] installs into Windows 7 with no problem. (Windows 8.1 has a problem with unsigned drivers.) Don't have the phone connected to the computer when you install the driver.
Once the driver is installed, when you plug the phone into the computer you'll see the driver setting up various "devices" - a modem, etc. If that doesn't work, there's a hardware problem with the phone. (It's possible that the ROM or kernel are corrupted, but that's very rare.)
The contacts will be deleted when you reset the phone (the purpose of resetting is to remove all the data you've put into the phone since you got it), so that's normal. Those 57 you still have are probably Google contacts (you can also have Device contacts and SIM contacts. Device is the default - it should be Google), because as soon as you put your gmail address into Accounts, the phone syncs your Google contacts (which is why all contacts should be entered ad Google contacts).
So if your driver doesn't install into Windows 7, download it from the link I gave you and try again. If it still doesn't work, you have a problem with your computer. If the driver installs into the computer but the phone still won;'t connect to the computer, bring the phone back to where you bought it - the phone has issues.