For what it is worth.
I have a 1st gen iPhone left over after I upgraded to 3 g. I would really like to use its wifi capability for misc. internet and games (call it an iPod touch).
I was stopped by itunes when I plugged it in but was stopped because I didn't have a sim card. I bought a sim card from ifixit.
Next I was stopped by the activation screen of itunes. Itunes won't let me in to do anything with the device without activating with AT&T. I don't want to do this because I don't need phone capabilities and don't want the expense (minimum 2 year commitment).
Paid for a jailbreak program, downloaded, then got lost in a sea of other sites, other downloads, confusing steps. Needless to say not the 5 minute fix the site advertised.
Seems like a waste to not be able to get some use out of this neat little pocket device. It goes against a core value of ifixit, "waste not"
Good luck. I will drop elais a email