2 iPhones - 1 iTunes Account (O2 UK question)

Hi All
Just managed to get hold of a 4, I now plan to give my wife my old 3g. When I activated the 4 it said 'restore phone from backup', which I did hence I have all my contacts, apps etc. If I now get a Sim only contract from O2 and put that new Sim (I intend to keep her same number),in the 3g and plug it into iTunes does anyone know what happens? If again it offers to 'restore from backup' is there an issue, I don't want to mess anything up on the 4 and can I use the same apple account(mine) on the 3g and the 4?
Any advice and experience is welcome.
Matt

My husband and I use the same iTunes account . When she plugs in your old phone, she will need to set it up as a new phone and name it. Then you each can set up your own settings to sync what you want on each phone. For example, you may not want the same playlists on your phones. Hope this helps.

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