Upgrading to 2G to 3GS

2 questions aboutt upgrading to the iPhone 3GS:
1) I would like to give my 2G to my wife and buy the 3GS (we both are current ATT customers with cell phone lines). Do I simply purchase the 3GS (i.e. replace iphone option in the Apple Store), activate it and then separately re-activate the 2G? Do I have to swap any sim cards?
2) How do I re-sync all my info from the 2G phone to the new 3GS?

I would like to do the same thing and when I asked at the local AT&T store i didn't like the answer I received.
Here's my situation: My wife will be new to AT&T. I wanted to have her purchase the new 3GS as a new customer ($199/$299) and then swap numbers with her....she takes my 2G with her number (and new 2 year contract) and I take her 3GS with my number (and live out the end of my 2 year contract which is 19 months into it).
The reason I want to do it this way is two fold...1) my wife does not need the 3G data plan($30+$5 for texts) and will be fine with my old 2G plan ($20) this saves us $15 a month and $199/$299 for a new phone and 2) so that next year one of us will be eligible for the "next iPhone" and once again, I'll take the new one and she'll take my one year old 3GS.
Problem is the AT&T tech told me that the only way to give my wife my 2G would be if she signs a 2 year commitment (even though the phone was originally paid for in full...no subsidization) which basically ***** I think. If she brought any other used phone she would not be forced to sign a new 2 year commitment, apparently just the iPhone.
I might just have to talk my wife into switching phone numbers for a year to forgo all this headache!

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