Upgrade from 3G 8GB to 3GS 16GB iphone

I currently have an iphone 3G 8GB and have been given to opportunity to upgrade to a 3GS 16GB. How simple is it to transfer everything from my current iphone to the new one? HAs anybody had any issues with this if so I would like to hear them.. Also are there any whispers out there of another updated Iphone anytime this year and if so would I be better of waiting until later in the year before committing to a new contract??

We cannot discuss rumors as Apple has made no official product announcement. The Original iPhone released in June 2007, the 3G was July 2008 and the 3GS was June 2009.
To switch phones is simple. Sync the 3G phone to iTunes and then unplug. Plug in the new phone and right click on it when it appears in iTunes. Select restore from backup to move everything over.

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