Question about Iphone bought in Dubai?

I recently bought a new Iphone 3G in Dubai, where Apple do not officially sell Iphones. However, I was able to walk into a big electronics store and buy it, without it being locked to a tele provider. I am now worried in case it is cracked, though it came in the original box, and will stop working if I say yes to a software upgrade. The Iphone came with Italian instructions, and since it is illegal to lock a telephone to one sole provider in Italy, maybe the telephone is not cracked after all. How do I find out if it is cracked or not, so I can upgrade without problems of Iphone stops working? Would really appreciate any help I can get with this. Many thanks in advance.

OK, my knowledge on this is limited but i hope i can help.

but from what i know, in Italy and France, as you said phones come unlocked, so if your phone is brand new, you shouldn't have a problem, just pop your current sim card in and it should be fine, same with the updates, that should all work ok, but you might want a second opinion.