Uses for old iPhone once we upgrade to the new 3G iPhone

I'm considering upgrading to the new 3G iPhone. What happens to the old iPhone? Can it be used as a simple music player with the phone feature turned off?
THANKS!

Yes, you actually have to buy the iPhone 3G to upgrade from your old iPhone. You will get the $199/$299 price. If you had bought it after May 27th, you could have exchanged it in-store with a $20 restocking fee, but this isn't the case, so you will get the subsidized price of $199/$299.

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