Selling iPhone - How much should I charge?

I was at a company function today and someone came up to me and wanted to buy my iPhone. I have the 1st generation 8GB phone, which is in fine condition. When I research how much I should charged, I just saw a lot of unlocked phones. Mine is not unlocked. It is regular, 8GB from the Apple store and I have AT&T service.
I don't want to over charge my colleague, but I would like to get as much as I can for it so that I can get a new iPhone. (Whole story is that this person from work wants a 3G, and will buy mine to give to her husband, that way they both have one, but he doesn't need the 3G version).
Anyone have a recommendation for how much I should charge? Can I expect $199 or more, or does that seem a bit unreasonable?
Thanks for your perpsective.

Well, you should be able to charge more considering:
1) iPhone 3G is not yet available really...
2) They may not want an iPhone 3G because they dont want to sign a new activation with AT&T. With the old iPhone, they can just pop in their old sim card from their phone and they are good to go...
3) People may want an unlocked phone (which cannot happen to 3G iPhones because you must sign a new contract to purchase one...
I would say that even though the newer models are $200, older models are more valuble to people not in the market to terminate or extend their phone providers contracts... I'd say between $300 and $500 at this point depending on if the phone is in good condition and/or unlocked.

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