CURRENT at&t users who are confused in upgrading to 3G

but according to the att memo, some people are ineligible for a subsidized iPhone, and there will be a special price for these users.

but what I don't really understand is that people who have the 1st gen iPhone are eligible for the new one. But i sold my iPhone 2 weeks ago and have been using a temp. backup phone, I have not canceled my iPhone data, or changed my plan in any way. But Att does know I am using this temp phone because it shows up online instead of my iPhone... so I am still confused. Do i qualify, or not?