I want to get the 3G and give the old iPhone to a family member. How can I do this?

[I'm a Mac]

bvI currently have the 1st generation iPhone that I want to give to a family member, who is not yet on AT&T, but will be switching to my plan. How can I give it to them and upgrade mine to the new one? Do I need to restore my old one, and then activate it under their number, and then activate the new one under my existing number? Or do I have to activate the new one under their number, switch the sim cards, and then restore to put the proper music and videos on? (or are these both the wrong solution?)

Thanks.

[Donz0r]

activate the new one on your number, then give your old iphone to your friend.

[I'm a Mac]

activate the new one on your number, then give your old iphone to your friend.

So do they just go to iTunes and activate there, once the new one is activated on my number?

[angel1286]

yup its just that easy

[I'm a Mac]

So how does the phone know it's no longer activated...

[alphaod]

So how does the phone know it's no longer activated...

The phone is not a person, it can't remember anything... :p