No, I meant that if you backed up and then restored and it still doesn't show your convo history then I don't think it will, come to think of, I think it's just for restoring your bbm contact list and settings.
I checked in options, and it is selected to backup to SD Card. However, when I check the SD card, its in REM format. How do I read them?
You don't. The information used to encrypt the data files is no longer available since you wiped the OS and installed over it. That's why content protection is so risky in this day and age of OS leaks.