My iPhone was Stolen, am I protected?

My iPhone 4 was recently stolen. The phone did have a passcode on it and had synced it to my computer, but I'm wondering if the thieves can bypass this passcode to get to my notes and pictures? I called AT&T and blacklisted the serial number as well as disabled the service. I'm not exactly sure what this means, but I'm curious if my information on the phone is protected.

I think that if it's password protected, all the thief can do is restore the phone. That's it. They can't sync without the password or access anything.

If they managed to guess the passcode that's a different story.

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