Upgrading from iPhone 1 to 3GS

Hi, I've had an original iPhone for about 2 1/2 years. My mom recently bought an iPhone 3GS, but no longer wants it. I'd like to upgrade to her phone, but before I do I want to make sure it'll work.
1) Is it as simple as popping out the SIM cards and switching them? Assuming the SIM cards are compatible between models, this would switch my phone number and billing over to the new phone, right? (I want to keep my same phone number, plan, billing, etc. Basically, does putting my SIM in a different phone have any effect on how AT&T deals with me?)
2) What happens when I connect the new phone to my computer? Can I transfer my apps, contacts, photos, music, etc. automatically from (the computer's backup of) the old phone to the new one? Any complications to beware of?
Thanks, trying to cover my bases before I start...
Adam

"iPhone: Transferring information from your current iPhone to a new iPhone"
http://support.apple.com/kb/HT2109

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