What exactly do I do with my old iPhone to keep it as an iPod?

I got my 3g phone yesterday, replacing my original iPhone. I also got a new phone number as I just recently moved out of state. Both phones have a sim card in them. No problems at all so far with the new one. It synced from my old phone just fine.
My question is what exactly to do with the old one? Since it was deactivated it still works fine minus the phone, but I've not tried to sync it. I did not update to 2.0.1 prior to deactivating it. I understand I won't be able to do updated or a restore in the future. But do I leave the old sim card in it or take it out before I sync it? I'm not sure if that will make a difference or not. Any tips or help appreciated.
Steven
Message was edited by: bamabeard

You don't need to do anything to the old phone to use it as a Touch. You can continue to sync with the old SIM still in the phone but to do any updates you would need to reactivate the phone.

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