@geckotech um... i don't think that he is "incorrect" because that is exactly what he needs to do. if he plugs the iPhone into the computer, it will only activate the phone and not bring all his account information over to the new micro sim. He does have to go to AT&T.
If he plugs the new iPhone with microSIM into iTunes, it will activate the phone. What more needs to be done at an AT&T store. Your contacts, pictures, music, etc. from an old iPhone would be backed up in iTunes. And if the guy has never used an iPhone before and doesn't have the back-up information, there is still free software to transfer contacts from a cell phone via USB to a desktop/laptop. It would take him about 10 extra minutes to do. So why other AT&T employees when EVERYTHING can be done on his own?