I want to buy and iphone BUT....

I live overseas, a place where they don't sell iphones. It's all an open network here with people changing carriers all the time and most people are just pay as you go. I'm a Mac guy..I've got my Macbook Pro and I need a phone..I would love an iPhone but I don't want one with a contract from back home as I'm not living there. This may sound stupid but is it legal to get a second hand iPhone and use it here by just inserting a local SIM card inside the phone? Is this legal to do? All I want is to be able to use my iphone (not really concerned about even using it for internet purposes) but I know there is this thing where phones are locked and unlocking them in illegal. I don't want to do anything illegal, I just want to be able to put a local SIM card in my phone. Does this make sense?
thanks!
sorry if this is a stupid question..

You cannot buy a legally unlocked iPhone in the US or Canada. You can in Italy, UK, Hong Kong, Peoples Republic of China, France and Australia. Plus a few others I forgot. However, iPhones are only repaired in the country where purchased. To be sure of getting a legally unlocked phone you would buy it directly from Apple or an Apple authorized reseller (e.g., Carphone Warehouse in the UK).

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