Can I upgrade a deactivated iPhone 4 to IOS 5?

I was on vacation last week and was using my iPhone 4 on the trip.  Then on Friday, I was lucky enough to find an Apple Store with plenty of 4s phones in stock so I bought one.  Everything is working fine with the new phone and now I want to get my old iPhone 4 ready to sell.  However, I still have a lot of photos and video from the trip that I want to download before wiping out all my personal stuff.  I also want to upgrade the phone to IOS 5 since I figure that having the latest OS will be appealing to buyers.
So now that I'm home, will I be able to sync the old iPhone 4 to my iTunes on my PC to download the photos and do the IOS upgrade without messing anything up?  Since the SIM card was deactivated at the Apple Store when they transferred my phone # to the new phone, will iTunes try to reactivate it again?  I've never tried anything like this before so I'm a little apprehensive.

Here are few ways you can do:
1. If your iphone 4 still has the old deactivated micro-sim card, all you need to do is put your iphone into airplane mode (if not that is), and proceed to update your iphone 4 to iOS 5 and be able to transfer your stuff to your pc. Simply just connect your iphone 4 to your itunes.
2. Another way to do it is remove the working sim card on your iphone 4S, and put that into your iphone 4 and do the same step as #1 (connect to itunes, update and transfer). Once complete, you can then move your workign sim card back to your iphone 4S.

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