You may save yourself some scratch by picking up an iPod Touch instead of the iPhone.  With any version of the iPhone, you will pay at least $70 a month for AT&T service - which gets you mobile internet service anywhere they provide cell coverage.  If you need internet and e-mail wherever you might be without having access to a local wi-fi network, the iPhone is a worthwhile investment.

If you have a wireless network (wi-fi) at home and/or at work, and you can use your device mostly at those places, then save some money and get an iPod Touch.  You'll only be missing out on the telephone and camera functions.  (You won't get true GPS either, but the maps program on the Touch uses your wi-fi location and does a pretty good job)  You won't have to pay a monthly fee to use wireless internet that already exists.  The 2nd generation Touch now comes with the same software applications that the iPhone does, including maps, email, etc.  The first generation can be updated (for $10 from Apple) so that it also can use the same applications.

UPDATE:  The new 3G(s) version of the iPhone has an updated processor, which means it probably moves between applications and performs a bit faster than the iPod Touch.  This should make web surfing faster as well.  Something to think about..

Cheers,
Hays Consulting

**Please rate this guide**