Transferring iPhone between family members (same plan)

I searched for an answer to this, but must not be using the right search terms -- or, it's a non-issue, and therefore no discussions on it.
I have an iPhone 3GS (1 year left on contract), and my wife has an old flip phone (eligible for upgrade for a while now). We are going to be getting an iPhone 4 under her plan (since I'm still in my 3GS term), and then we want to swap phones -- she will get my 3GS and I will get her 4.
Questions:
1) This is supported by AT&T, right? I can't think why not, but wanted to make sure.
2) How will we have to set up the SIM cards in both?
3) Can I just register hers under my account, or since when we order it, we will order it through her account, and therefore will already be connected to her account?
4) Will I have to get a new sim card for my 3GS for her, or can she just use the one in her current old flip phone? I believe they're the same size.
5) Due to this complication, am I better ordering this through AT&T and have them set everything up (both phones) when we get our phone, or will Apple store do better with this?
Thanks in advance.

No problem at all. Order the phone with her upgrade. It doesn't matter whether you buy it online through Apple or at their store or and AT&T store or best buy or walmart. Once you have the new phone take it to an AT&T Store and they will give you new sims for both phones. There is no charge for this if it is a corporate store, but an authorized retailer will charge you $18-$25 per sim.

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