My mother had an iphone 2g that just broke. She was paying extra for insurance, so she got it replaced, but then decided to upgrade to iphone 4. So I have an original iphone (model #A1203) fresh out of the box that has never been activated or used that I would like to use. I currently have an ATT voice plan that I'm using with a motorala razr, and I'd like to use my sim from the RAZr in the iphone 2g without an ATT data plan (welcome to 2007!). I downloaded the pwnage tool off the link from this site, and tried to follow directions found in other posts, but I'm having trouble. The pwnage tool says I don't have itunes installed, and it can't find any ispw files. I do have itunes 10.2.1 on my computer. I'm running Mac OS X 10.6.7. I'm not super familiar with phone jargon or technologies. Would someone please give me straightforward advice about what I need to do, what to download, where to download it from, etc. I really appreciate it. Thanks.

You need pwnagetool 3.1.5 (and that doesn't know about any iTunes 10 version) - newer versions of pwnagetool have (I think) dropped support for the 2G iPhone. It *should* work, but is essentially untested. If you want to be sure, get an iTunes 9.x version instead. iTunes - The iPhone Wiki

AT&T can (and does) detect iPhones running on their network without a data plan, you may get lucky if you turn off the 2G mobile data entirely (via SBSettings) - but they are getting increasingly aggressive about capturing (from their perspective) missing revenue.