Use unactivated iPhone as iTouch?

[miracleboy]

Sorry if this has been answered deep in the iPhone thread but I haven't been following it.

I am thinking about getting an iTouch, but then thought as the iTouch is almost identical to the iPhone just without the phone bits is it possible to buy the iPhone and just use it as an iTouch without activating it on O2?

The benefit of that being that if it's unlocked later on I can just put my phone sim in?

 

[miracleboy]

How do you activate the iphone so that it's fully functional except you can't make calls? Is the activation a 2 step process (i.e. registration through itunes to activate the ipod etc), then purchase of the O2 rip off through itunes?

 

[miracleboy]

Thanks - my wife is going to NY in Feb so think I'll ask her to bring an iPhone back - should save me £70 on the UK price.