Mandar,first of all welcome to the k700i club..quite a few guys here(including mt) have it and wht i m gonna share with u here will make u think its even greater than u thgt it was!
Get a bluetooth dongle(i got one for Rs.500 from Lamington road).Connect it to ur pc..do not install the software tht comes with it, let windows install its own drivers(only works with SP2 i think)
Now download "Floats mobile agent" or "My phone explorer"
Floats mobile agent is like a phone on ur pc.. view messages,even make calls...and see all the phone folders!
My phone explorer is specially for K700-unlike floats which does have a few probs with it..but works for all sony models.
Then using bluetooth..u can backup messages,transfer files and wht not..have any probs..bring them here!