So if I buy off Ebay a new iPhone 16gb unlocked 1.1.4 then connect it to itunes what will happen? What problems am I likely to experience? will the phone know I have no contract? will it lock out? can I synch music and movies as normal? What are the down side to buying an unlocked phone off ebay from a good seller? I am on O2 anyway if that counts for anything. Anyone done this?