Buying an Iphone!! Wifi question??

Hello all.
I am planning on buying an iphone of ebay. If I was to purchase someones new upgrade should I be worried about the phone getting blocked as a result of it being reported stolen?
I wanted to put my O2 pay as you go sim in.
Also since I will be using a pay as you go O2 sim do I have to pay any sort of subscriptions to appl/ O2 for using my own router through the iphone?
Thanks for your help?

Steve,
It seems you know very little about the iphone. Perhaps, before you purchase you should do some more research.
You could start at Apples website: http://www.apple.com/uk/iphone/
You can find the manual online as well:
http://manuals.info.apple.com/enUS/iPhone_UserGuide.pdf

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