My gf lost her 1st generation iphone the other day and unfortunately it had not been syncd up with itunes for a while. It was on an O2 contract but she is now thinking of getting a new one on an Orange contract. Can she get back her purchases made on her original phone and put them on the new one even though it would be on an Orange contract. All her purchases are showing in her itunes account profile.

yes, the contract makes no difference to itunes.