Alright everyone just to be quick because i am trying to help out my friends here. Had an old iphone, upgrade to 2.0 early, played games in the line even bought some and fooled around with them in line. bought a brand new iphone 3g Went home. BACKED UP AND SYNCED my OLD iPHONE FIRST made sure that it completed SUCCESSFULLY Put it my new iphone 3g and synced it, it came up to activate blah blah, after that it asks you "new iphone" or "restore" I chose the backup from my first gen iphone, and hit that. It took 1 and a Half Hours, i just let it SIT there. Everything works like a CHAMP, all games Apps, i love it! and it runs blazing fast to! For those of you stuck in a tight spot. Try to sync your new one and perform a restore. You can restore from the first gen model's backup.