I didn't have to jailbreak it, or wipe it, or anything. I just popped out the SIM card (using the ultra-modern, paper clip-emulating Jonathan Ive-designed "extraction tool" supplied with my iPhone 3G), and I've got an iPod touch to give my daughter (and a home remote, and perhaps necessary as a spare lest my 3G suffer a mishap). Freakin' awesome!
jjmarcus tech solutions 