I have a magical SIM card! AT&T!

[TheSpaz]

I'm glad i'm correct. I just hope, 3.1 keeps it that ay. I would love to have my Original iphone activated, take that sim out and move to Go-Phone.

It could be that Apple did this for beta testing so that developers can easily have an original iPhone for beta testing by putting the SIM card from their 3G into the original iPhone just to activate it to get passed the "connect to iTunes" screen. Perhaps the official 3.1 will go back to the way it used to be where you have to officially activate the original iPhone with the $20 data plan.

 

[ouimetnick]

But you would think, that because almost everybody has a iPhone 3G or 3GS, that Apple wouldn't even need the connect to iTunes screen for development. Plus, I paid $399.99 for my iPhone and if I'm done with my contract or don;'t want to pay $59.99 a month, Apple should make it easy for it to be used as an iPod touch.
If you no longer have the SIM that was used with the original iPhone, and the original iPhone displays the "Connect To iTunes" screen:

Contact your carrier to get a replacement SIM.
If you don't already have a wireless service account/tariff with that carrier, iTunes will help you create one. For more information, see this document.
Note: This article only applies to original iPhone.
When i get a new Sim, it will most likely want me to activate with AT&T, I just want to use it as an iPod touch.
If I don't have a sim card in it, I should still be able to restore and update. But NO! Apple and AT&T want to use every way possible to get our money.