Turning 1st generation iPhone into iTouch

So I bought the new 3g and was wondering what I could do with my old phone. Is it possible to sync both my new phone and the old on to the same computer through iTunes? I'd essentially want my old phone to serve as an itouch.

You're going to have to jailbreak it to use it without the phone functions, but yes, it's definitely possible. Sure, you could just turn on airplane mode, but that limits the device as then you can't use the Wi-Fi or the Bluetooth.

On my 3G I can turn airplane mode on then select wifi on as well mine is not jailbroken or unlocked.

But doest it make you keep a SIM card in the device?

Definately keep it as a backup or standalone iPod.

To be honest I'd sell it, unless you mean to give it to someone else to use as an iPod touch.

You should still be able to get quite a tidy sum for it on eBay, from which you could then buy a new 2nd gen iPod touch (assuming you really need the touch).

I would also recommend selling it on Ebay. For the most money, jailbreak and unlock it first and advertise it as such. Doing so is very easy if you've never done it. Just go to Apple News | ModMyi.com | iPhone, iPod, Mac, OS X, More and there's great step by step tutorials and other resources.

Just a word of caution, be very deliberate about describing hte item as being sold "as is" and that there are no guarantees on the phone. Despite how reliable jailbreaking/unlocking is, it's still not 100%. The buyer is assuming that risk when they buy it that way, but just make sure that fact is communicated in the auction.

I had a 2g iPhone for awhile. I actually used it as an iPod Touch, the WiFi worked and I never actually activated it. I would assume, that I could do this and activate the phone, I'm wondering though, how does voice mail and texting work without a data plan? Will they work? So, I can activate another ATT phone and then switch the SIM card?

i would definitely sell the 2g, get as much money as you can, you'd be able to buy an iTouch with much more memory as the phone and would maximize the use of it as an ipod