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Your Old iPhone...
"Appleinsider reports that an AT&T spokesperson has informed them that customers upgrading to the iPhone 3G could continue to use their original iPhone as a Wi-Fi iPod...
This would replicate the functionality of the iPod touch, with the additional ability to record audio and take photographs. If it can be successfully upgraded to 2.0 firmware without service, the original iPhone could also be used to run 3rd party apps and games."
Good news, IMO.
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