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Hmmm iTunes 7.7.1 (which is required for the 3G) supports 10.3.9, but the iPhone requirements are 10.4.10 or later.

Have you tried using iTunes 7.7.1 on your system and seeing what happens with the iPhone?

Otherwise, you could get VirtualPC and run Windows XP SP2 on it (as nasty as that sounds).
 
Thanx for the input, I am looking for the existence of some kind of work-around for this. I will stay away from the windows.I will have to just go Leopard shopping. As a side question, is there a discount reseller for Leopard? Oh, ya. I'm cheap.
 
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