Blogger and iPhone software developer and hacker Erica Sadun recently got her hands on an iPhone 3G. Right away she checked to see if the latest iPhone worked with AT&T's Pay As You Go SIMs out of the box. This would allow you to use an iPhone 3G without a service contract. A couple of minutes after popping the SIM, which identifies a cell phone to AT&T's network, into the iPhone 3G, Sadun was making phone calls - no problem. A little while after that and the iPhone 3G with the Pay As You Go SIM accessed the carrier's 3G network. See here for the full story.