iPhone purchase

Hi everyone!

I'm writing to you from overseas (Germany). My concern is that I'm planing to buy an iPhone and wanted to know how the purchase looks like.
Here in Germany every Mac-enthusiast says something different about how to buy an iPhone in the States.
That's why I want to know it from you guys. Is it possible to pay it with cash since I heard that Apple only sells them by credit card. If so, are foreign cards accepted, eg. mine from Germany (Visa, Master Card or AmEx?)
Are there any differences between AppleStores and At&T Shops?
We also have the rumor that you now have to sign something like a pre-contract with AT&T, is that right?
I know that I'll have to jailbreak my iPhone from the States but the iPhone sold over here is simply not affordable, compared to the States. We here have to pay 588$ for the phone and we have to sign a 2 year contract at the moment of purchase that costs 73 $ per month in the cheapest form. This rate plan contains unlimited data and visual voice mail, just as you in the States, 40 SMS per month and only 100 minutes, not even a flatrate within your carrier. So the german rate plans really suck.
If you want to buy the iPhone without simlock and no 2 year contract you have to pay 1472$. So I hope now you see, why I want to buy one in the States.

Whats with the activations? Is it done completely at home on your mac? Or do you have to sign anything at purchase?

Looking forward for all replies.

merry christmas to all of you!

You have to purchase with a credit card because they want to track and make sure you don't buy more than 2. As long as you're using a card they accept, you should be fine.

There is no pre-contract. You sign up and activate from home on your computer.

You can unlock, but there is always a chance an update will deactivate your phone, in which case you'll have to wait for someone to find an unlock again. The fact that they're selling unlock iPhones is intriguing though. I can't imagine there is any difference in hardware for an unlocked iPhone, so could simply getting a copy of the firmware for an unlocked iPhone and flashing it onto your locked iPhone work? Maybe, but it's sounds a little too easy. Something to look into, though.

Ok, do you by chance know which cards are accepted or how they sort which they accept?
Here in Germany T-Moblie is the official carrier. The unlock iPhone went on sale due to a legal trial by one of it's competitors since there is a agreement by all carriers that they'll sell each phone also simlock free. So there is no problem getting a "carrier-free" iPhone, only that it costs 1472$ (999€).
I'm aware of the problem concerning future updates by apple. But seriously, how often did one update its phone before one had the iPhone? I've never done that. So I might not need every new update on my phone.
I knew the point of Apple wanting to make sure you only buy 2 per card, but I also herad that people on german Apple-Forums reported that they had no problem getting one for 399$ in cash, so no card needed.
That's why there are so many rumors here in Germany about the iPhone purchase in the States.
Ok, I'm glad about that there is no pre-contract or whatsoever. Well then I hope that my or the card a friend of mine will work.
If there is anything I might not yet know about selling terms in the States please tell me.
Another question is, does the actual firmware 1.1.2 comes with a german menu? Not that I'll need or even use it as my german pretty sucks, englsh would be my choice of language.

thanks!