How do I transfer the contacts from my Nextel/sprint SIM to a 3G iPhone?

I am trying to determine if I will buy the Google phone or the iPhone 3G. I have been using a very powerful, military grade phone from Nextel for over three years. It has GPS voice turn by turn (1st negative for the 3G), the ability to track my son, with his phone, PTT, 25 groups and up to 600 contacts in each, etc.
My biggest concern is how to transfer ALL of my contacts (437 in one group, 392 in another group, and 47 in another), to the 3G.
Second question: I have been doing a great deal of research on this phone and many of these 3Gs are being sold on EBay for over $700.00. I guess it is because they are "unlocked", and some are described as being unlocked from the factory. If I understand correctly, "unlocked" simply means that the phone is able to use any network available, not just the 3G. But you can buy the SIM over-lay to "unlock" your own 3G, for only $5.00. So why would anyone buy a 3G for over $700.00 if they can unlock their own phone? Does the factory truly "unlock" some phones (BTW, these "factory" phones are sold as "NEW", as stated on EBay)?
Also, Nextel/sprint are soon switching to the 4G network.
The reason, and only reason I am separating myself from Nextel, is because they are in bed with sprint. I would not do or buy ANYTHING that has anything to do with sprint.
I would appreciate some answers to my inquiries, and any other info regarding/about the "iPhone 3G".
Thank you very much for your time and help with these questions. I truly appreciate it.
Cheers,
PM
PS, is there a manual on this phone, on this site, in PDF format? I have not looked yet, but I might find it. This site is extremely hard to navigate. Many times the buttons need to be clicked multiple times in order for the next page to show up. It seems strange the things that are hapening on this site.

If the contacts are on your current SIM card, you can simply insert that SIM card into the iPhone 3G and select Settings > Mail, Contacts, Calendar > Import SIM Contacts. The iPhone does not store contacts on the SIM card (they are stored in the flash memory) but it can import them. Alternatively, if they are on your computer, sync from them there (that's normally how contacts are managed, synced with Outlook/Address Book).
This is not the place to discuss unofficially unlocked iPhones. All iPhones sold in the US are carrier-locked to AT&T. In some countries (Italy, Hong Kong, Belguim, for example), iPhones can be officially unlocked by the carrier. The phones on eBay are not these, they are hacked, and have not warranty coverage.
Manual is here:
http://manuals.info.apple.com/enUS/iPhone_UserGuide.pdf

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