Can my lost iPhone be hacked even with a passcode lock?

Long story short, I left my iPhone with family and they shiped it via UPS. UPS lost it and is peforming a week long trace. Because my iPhone is off I can't track it in mobile me. But in case someone did find the package, with my name and address on it, and opened it anyway, and turned on my iPhone then they will get the 2min beeping and message asking them to call another number to reach me.
Well today I received a confirmation email that this was delivered, but by the time I tried to GPS track it the phone was off again. I'm still hopeful of getting my iPhone back but I'm ging to have to constantly monitor things. I don't want to wipe it until I'm sure I won't get it back.
My question: *I have a security PIN on the iPhone 3GS.* I believe this prevents someone from plugging it in and setting it to factory settings. I*s there a way around this?* Could my iPhone already be doomed by a more savvy hacker? I don't need the how, just if they can. In my head I imagine someone using Disk Utility on the Mac to reformat it.
I'm so upset right now! In order to turn it on someone had to violate the package UPS lost, despite having my contact info on it. Then they flipped on the phone and saw my message and shut it down again! My forgetfulness for leaving it, incompetence at UPS for losing it, and dishonesty of whoever found it! Grrrrr!

Sorry to hear about your loss...this tells you about the passcode lock. If they try enough times, the phone will either not let them try again or wipe itself depending on how you set things up. Either way, they can't get to your data unless they have the tools the FBI & police use, and that's doubtful.
http://support.apple.com/kb/HT1212

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