upgrading from 2g to 3gs, selling 2g process

[conman16]

Ok I am going to upgrade from my 2.2.1 EDGE iPhone to the new 3GS. I am then going to sell my 2g either to a friend or on craigslist. They may use it as either a phone or an iPod touch. I want to be able to have all my current data and such on my new 3gs (I do not have MobileMe). Can anyone explain this full process to me, like a step by step walkthrough on what I need to do?
Thank you

EDIT: what about the SIM card also? And will the 2g still be able to do everything after I get the 3gs? I'm very confused about this whole process

 

[bennypod]

1. Back-up iPhone and transfer all purchases
2. Erase all content and settings
3. Restore
4. Unlock and jailbreak with quickpwn (will increase value)
5. List online

 

[shrimpdesign]

You don't want to keep your original iPhone? That's a piece of history, right there.

 

[bennypod]

Just pop out the SIM card and put it into the 3G S. The old iPhone will be like a n iPod touch without a SIM card.

 

[conman16]

What about my friend that I am selling it to? How would he go about activating it and using it as either an iPod touch or iphone ?