What to do with another iphone?

I have a friend that is going to give me his original iphone when his ATT contract run's out.
I have a 3g iphone now but thought i'd pass it on to a family member..... how does it work with ATT with this scenario?
I called one corp ATT outlet and was put on terminal hold.

Hi Jay,
For the original iPhone, you'll just need a new unused SIM from AT&T. Put the new SIM in the iPhone and connect it to a computer with iTunes. Then follow the on-screen instructions on activating the iPhone.
This article: http://support.apple.com/kb/HT1438 will show you how to remove the iPhone SIM card.
For the iPhone 3G, you'll need to take it to a local AT&T store. They will provide a new SIM and start the activation process. Then you can take it home and complete the setup in iTunes.
-Jason

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