[2.0 5A347] iphone activated but not unlocked
I've just inherited an 'old' iphone from someone who has upgraded to the new 3g iphone. Optimistically I put in my payg o2 sim but got an error message to say it was locked. Without the sim I can use it as a pretty ipod with all the tunes that are already stored but obviously not as a phone :( From what I can tell from various posts if people have upgraded an unlocked iphone to 2.0 there have been problems and the suggestion is to downgrade back to 1.1.4. As this iphone has not yet been unlocked, does the same apply? If so, what do people think - is it worth the 'hassle' of downgrading itunes and then the iphone or am I better off holding out until 2.0 can be unlocked? I'm not entirely clear on the benefits of 2.0 as opposed to 1.1.4, it would just be nice to have a functional phone, I'm not fussed about lots of extra features.
Have searched the forum but can't find an existing post / answer that exactly matches this query, and have also done my best to give this a suitable title so please be nice! Hopefully somebody can advise....