There is a group of nerds here in Phx Az who make Verizon iphones for $ 500 not including the phone i have used one these phones the features are the same except that the vcast is used as the internet. I am not sure of the full process but i do know it involvers parts from a Verizon voyager and is fairly simple to i do. They also do memory upgrades.
I call total BS on this.