You def couldnt put your SIM in it, but Im assuming the wifi would still work, so I would think so. I believe AT&T is phasing out the 3g and 3Gs models, and they will continue to sell them as long as supplies last. If you do go to AT&T, get the i4, its worth the extra $50 or $100 bucks.
OP, yes you can use the iPhone as an iPod touch without service. Apple is phasing or has phased out the 3G but the 3G[S] is alive and well (still in production).
how would i go about using an unlocked iphone on a carrier like sprnit or t mobile. Mainly how would i use it as a pre paid phone.
Sprint, no go. They don't use S
GSM sim cards. You can get a Sprint world phone and use it on AT&T or T Mobile. If you purchased an unlocked phone you just pop in your SIM card. If it's a BB you will have to do a littler more to get the native programs to work.
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