New iPhone - want to use old one as Touch

Just picked up the 4 today, now I want to use the iPhone 3G as a Touch. Can I have the same apps on the "3G Touch" as well as the iPhone 4 from the same iTunes account? Or does the "3G Touch" need its own iTunes account and order the apps all over again?
Thanks

I did the same thing. Just use a different name for the old phone. I changed mine to itouch as a name.
I also took out the sim card.
It syncs all apps, music, books, etc just as it always did. The only difference is that it can't make or receive phone calls.
My granddaughter calls it her itouch since I have a lot of games on it especially for her.

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