Using phone as Ipod Touch

I have an original iphone I was using like an ipod touch for wifi and apps etc... not connected to at&t. After I updated to 3.0 it is prompting me to activate phone with at&t. I don't want to sign up for phone service with AT & T i just want to use my iphone on wifi, for music and apps? Can I revert back to 2.0? Can i register phone without signing up for service with at&t?

The answer is yes to all questions.
You need to leave the no longer activated SIM card inserted in the 3G - the SIM card that was used with the 3G when it was activated in order to install a firmware update on the iPhone, or restore the iPhone with iTunes if needed or wanted.
As it is possible to sync more than one iPod with the same iTunes library and iTunes account on the same computer with each iPod able to have its own sync preferences, the same applies to the iPhone.
Under the Applications tab for the iPhone sync preferences for each iPhone, choose Selected Applications. Select the applications in the window below that you want installed. Deselecting an application in the window below followed by a sync will remove the deselected application from the iPhone.

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