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Switching to iPhone 3G: Use the old iPhone as WiFi iPod instead 
palmaddict.typepad.com | by Andy J. S. | Sun, Jul 6
palmaddict.typepad.com is the #5 Blogger for iPod Touch
Another alternative, and IMHO the most sad way, is to downgrade your iPhone as a WiFi-enabled iPod Touch. As what an AT&T spokesperson has confirmed that neither AT&T nor Apple will prevent de-activated first-generation iPhones for serving as surrogate iPod touches.
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