New iTunes has killed my ability to Restore my iPhone. Hangs and never completes.

You will have to sign a 2-year POSTPAID contract for the 3G iPhone. The fee or penalties in addition to the $175 termination fee have not been clearly stated yet from everything I am reading/seeing.

People at AT&T can do math just like you and some maybe even better. You can believe they have run the scenarios on what the iPhone wil cost if you cancel, ETF, etc, etc.

From everything I am hearing if you have a v1 iPhone (EDGE) you will pay the current $20 iPhone rate for data plan.

I don't think you have this right. I have used an AT&T Blackberry GPS with Google Maps for free (using data plan). My fiance has a BB with Verizon and they disable the GPS before you even have it in your hands.

I heard Rockford Fozgate made them so they will be the shiznit.

You did luck out. I am being given $300 for my v1 iPhone.

My description/scenario may be wrong.

I just called AT&T (my employer) and was told something different than the normal process. I would like to say that it is early and it is ENTIRELY possible that there was confusion with the customer service rep but for everyone who wants an iPhone's sake I hope not.

I was told that the price will be $199 for the 8GBa nd $299 for the 16GB EVEN IF you got a BB or other phone in the last 2 years (subsidized) but YOU WILL have to sign a new 2-year agreement.

This seems crazy as they are taking a hit on that group of people who recently got a subsidized phone and will basically be getting another one earlier than they would be able to with the normal eligibiity rules.

Guess we will see.

Hate to say it but it makes perfect sense. Think about it. When you get a phone at a discount (subsidy) you have to commit to say 24 months.

Example;
You get $99 subsidized Curve in Jan 2007 - this means you are not "upgrade eligible" until around Jan 2009 (few months earlier likely).

Say you ditch the Curve and bought the v1 iPhone in December of 2007. When you did this you paid full price as there was no subsidy on the v1 iPhone.

Now in July 2008 you want to be considered "upgrade eligible" 6 months early because you have an iPhone but technically you still are obligated to pay the monthly fees associated with your $99 Curve through Jan 2009.

I admit this sucks. There is a guy sitting next to me (we work at the Enterprise) and he has been waiting for the new iPhone to come out and it is possible this very situation will apply to him and he will not be able to get the 3G iPhone for the subsidized price.

Hope this helps - don't shoot the messenger.

FTR - Anything I say is my personal opinion and DOES NOT reflect the opinion or policy of my employer.

no kidding. I might be willing to pay $2 a month for friggin copy/paste..

I still don't get how this is not there.. hoping it is added via firmware soon.

Mike, I am pretty sure your v1 iPhone will be on the old/current iPhone data plan $20 premium to voice plan and your new 3G iPhone will have to be on the new $30 plan.

There are rumblings that no SMS are included in the $30 iPhone plans but I haven't seen anything to verify this yet. I thinkt the SMS that was included in the original plan was about $5 worth of SMS.

Hope this helps.