Can I use an old iPhone as an iPod after deactivating it?

Yes that is exactly what the rep did. I did not know when it happened that this would be an issue. So I need to take the phone back to AT&T and get a new SIM card for my 3G, take the old SIM and put it back in my 2G. When they activate the new SIM in the 3G the old one is automatically de-activated?

When I get back home I plug the old 2G in and I am good to go right?

I received an iPhone from a family member that upgraded to a 3g phone. I want to use it as an iPod touch only. It's suppose to be deactivated but when I connect it to iTunes it brings up the persons old phone number and wants me to activate the phone with their zip code and last 4 digits of their social security number. Is the phone not deactivated if this is happening? I tried using a new sim card but that wants me to purchase a phone plan to activate it when I connect to iTunes. Any help? Thanks.

Did the family member leave the no longer activated SIM card inserted in the iPhone - the SIM card that was used with this iPhone when it was activated?

In order to install a firmware update on a no longer activated iPhone, or restore a no longer activated iPhone with iTunes if wanted or needed, which reinstalls the firmware, the no longer activated SIM card must be inserted in the iPhone to complete the process - the SIM card that was used with the iPhone when the iPhone was activated.

Is the phone not deactivated if this is happening?

If it wasn't deactivated, you wouldn't be provided a prompt to activate or re-activate the iPhone.

Yes, the original SIM card was left in the phone. But like I said when I connect it to iTunes it brings up the activation screens with his current iphone number. It then ask for his zip code and last 4 digits of his SS#. It seems like I'm missing a step or something isn't right with his old iphone. That's why I tried the new SIM card. Is the new SIM card even neccessary?

If you insert a new/non-activated SIM card in an inactivated iPhone, you will be prompted to activate the iPhone.

With the no longer activated SIM card inserted in the iPhone - the SIM card that was used with the iPhone when the iPhone was activated, is the restore with iTunes option available?

If so, try restoring the iPhone with iTunes. This will completely erase the iPhone first followed by re-installing the current firmware.

No the restore option is not available. The first thing that comes up when I connect the iPhone is the Let's get started page where it wants to activate the phone. If I hit cancel it doesn't do anything.

Hi.
I've read and understand the procedure to use an old iphone as an ipod touch by retaining the original sim card in it - very useful and informative, especially if you're USA-based - but I'm in the UK and iphones do not ship with a sim card installed - you have to transfer the old sim card into the new phone to activate.
I have upgraded from an original 2G iPhone to a 3Gs and have transferred my original sim card to the 3GS which is now operational. I would like to use the original iPhone as an ipod touch but I need to keep its original sim card in the new 3GS, and I don't want to risk messing up my new 3Gs - any suggestions please?

yes,

http://support.apple.com/kb/HT3406

also many other post on same topic, I just went thru this at AT&T....

Excellent responses, Allan. But with 38K+ posts, I guess you've had practice.

You answered every question I had without me having to ask!

Alan I got a new SIM card for the 3G, put the old one in the 2G and I am golden. Thank you very much for info you posted here, it was very helpful

Can u update the firmware on a deactivated iphone without it reactivating