IPhone WiFi doesn't work without SIM card?

So today I took the SIM card out of my old 2G phone (which I use as a iPod Touch). I noticed that it no longer worked on WiFi. Once I put the SIM card back in, it worked again.
It's not a big deal (just leave the old SIM card in), but is that behaviour expected?
Message was edited by: Host <to clarify title>

Hey Greg,
You may want to reset network settings or restore the iPhone.
I just took the SIM out of an iPhone 3G and an original iPhone. They were both able to browse web pages without the SIM inserted.
Jason

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