So I followed the instructions from here, http://support.apple.com/kb/HT3406 and got a blank AT&T Sim card. I put it in my replacement iPhone. I was on the phone with an AT&T rep who I talked too while activating my iPhone. Because I only want to use it as an iPod touch, she said activate it, and then cancel it with in 30 days. She also stated because I already own the phone, at&t would not ask for it back. WRONG! I called last night to cancel, AT&T wants me to return my old Original iPhone whos warrenty expired yesterday, back to the Apple store. I don't have anything but the Phone. I bought this from my neighbor who upgraded to the 3G last year. What do I do, pay the ETF, or GIVE BACK MY OWN PHONE? What would AT&T do about my KRZR K1 that I bought unlocked from Motorola's website? Or that KRZR K3 from Hong Kong? Please help me guys. I've already owned the phone about a year before activation and WILL NOT GIVE BACK MY OWN PHONE. I also will not pay the ETF. I just wanted to use it as an iPod touch, with out hacking in anyway.