well here is the deal, they where not able to give me any information at this time as they had none regarding my issue. i would have to call back in a later time.
I had replaced my phone in January of this year because it had battery issues, i used to have a go phone account since then, because when i signed up i was given a Go Phone account which i was fine with. But i was not able to transfer the Go Phone Accounts phone number to the replacement first gen iphone (AT&T) Fault.
So i had to create a new account under the replaceable phone and i was eligible for a postpaid account so i went with it, i also asked the store clerk if i would be fine if i wanted to upgrade under a subsidized price later on and they confirmed (although i didn't trust them one bit). At the same day i was able to get in contact with an AT&T supervisor that told me she put a note in my account that i would not have to pay the ETF fee if i ever wanted to cancel the contract because of the issues i went through with them. I got all her credentials to be safe in the future.
Anyways, i told the support lady that it would make sense no matter what the situation is that i would be able to upgrade my phone and pay the subsidized price because i purchased the first gen iPhone full price, but apparently its not possible at this time because of there limited information (and might not be possible at all), and the ETF fee that i would not have to pay was apparently miss information.
im just going to wait a couple days and give them another call or go to the same AT&T store i went through when i had the problem...