Hi guys. This one might be a little long. But im sure this will help clear up anyones questions about what to do for the 3 situations. Story goes like this. iPhone 3g is the first apple product, smart phone, i ever owned. I was lucky enough to be first in line on the release date. Stoked about being the first to get the phone, i was unlucky enough to get one with a bad home button. Apple swapped it for another one with no hassle. The second one i received had a pixel anomaly which they swapped again with no hassle. #3's build quality was terrible and they swapped it yet again. From this point on i was getting tired of going back and forth to the apple store, setting up appointments. To cut it short, i actually cycled through 9 iphone 3g's at the apple store. #9, my final iphone 3g, had pixel anomalies. Know that the final leg of these events was no easy feat, requiring speaking to managers. And from what i experienced, the manager themselves will definitely listen to your complaint, and for something like the 3g, offer you "1" last chance to swap. 2 managers offered me that solution but with the same result, a defective iphone 3g. Its allready past 30 days to return the iphone to AT&T, so what can i do now? I called up corporate AT&T and asked what would happen if i activated a different phone on my account. Not a PDA or smartphone, just a regular cellphone. The answer was simple. They have to change the EIED # on my 3g simcard, easily done while talking to a rep. Then they'll change my rate plan back to the normal contract as long as im not using the iphone 3g. You obviously have to have the data plan to use the iphone 3g, but since im not gonna use it, i'm back to my $39.99 plan with no data services. I still have a 2 year contract from the iPhone 3g with AT&T, I used up my upgrade, HOWEVER i do not have to pay $30 extra for the data plan as long as i dont use my iphone 3g. So there isn't a need to cancel my contract and pay an ETF since i need cellphone service anyway. The iphone 3g is transferrable to anyone who wants it. From what the corporate rep told me, the person just has to bring it into the store to activate it on their own AT&T account which would require them to get a new 3g simcard and add the $30 data plan to their acct. You don't require a BRAND NEW contract to do this. So if your phone is lost or stolen, you don't have to worry about the data plan, its easily changeable. Getting a replacement is another story. iPhone 3g is a creature of its own. As long as you have an upgrade available, even 2 years from now, you are eligible for the $399 $499 price for the 8gb 16 gb respectively at any retail store (AT&T, Apple). You do not have to get a new contract to buy the phone at that price, but you do have to change your plan to meet the iphone 3g standards. I called up a retail AT&T store and they checked my account and told me i could get the phone for $399, or $499. So that part checked out. However, if you call corporate to get an iphone 3g, they'll tell you that you cant order from them since you're upgrade date hasnt come up yet. Retail locations work though. A loophole in the iphone system. This is what i know from my own personal experience with the iphone 3g. I figured i'm just not meant to have an iphone 3g. I'm just glad i wasnt stuck having to pay for the data service after all this for the remaining 2 years on my contract. If you ever discover something different, let me know. Hopefully this cleared up some questions for people.