My v1 iphone is broken & there is physical damage how much is a replacement

i have an 8 gig v1, how much is it to swap it out for a new 8gb?
also, can i pay extra and swap it for a 16 v1 or no?

Sorry about your phone.
You can buy a 3g iphone for $199/$299 assuming your are eligible for upgrade ( you can check with AT&T to be sure).
You cannot swap for a different model. You may be able to get out of warranty service:
"Out-of-Warranty Service
If you own an iPhone and it requires service for any other hardware failure, Apple will service your iPhone for the Out-of-Warranty Repair Service fee listed below. Your replacement iPhone may be new or refurbished.
iPhone 3G Out-of-Warranty Service
8GB $199
16GB $299
Original iPhone Out-of-Warranty Service
4GB & 8GB $199
16GB $249
*All fees in US dollars and exclude applicable taxes
An iPhone is eligible for Out-of-Warranty Service if it is no longer eligible for warranty service and is determined by Apple to be repairable. If Apple determines that an iPhone is not repairable, for example, if it has failed due to liquid damage or catastrophic damage where the iPhone has been disassembled into multiple pieces then Out-of-Warranty Service is not available and the iPhone will be returned.
Apple may determine that your iPhone is not eligible for Out-of-Warranty Service. Please see Apple's Repair Terms And Conditions for further details."
http://www.apple.com/support/iphone/service/faq/

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