OOB 1.1.3 - Getting this to work on a non-iPhone AT&T Account?

Sooo...

I sent my OOB 1.1.1 iPhone in for warranty awhile back and just got it replaced with a 1.1.3 OOB iPhone (Week 4... very sad).

Anyhow, I just want to get this working with my account. I have a non-iPhone AT&T account and if I plug it into iTunes it goes through the whole activation thing... What do I do? It didn't ask to restore it from a backup for god knows why...

Anyone know where the backups are stored? I could probably Time Machine an old one up or something.