How to use the iPhone without a contract

How to unlock an iPhone for use as a Widescreen iPod + Wifi -- without a contract, and a $49.98 one time fee.

The first step involves faking bad credit by typing in "999-99-9999" as your Social Security number during activation to trigger the GoPhone/"Pick Your Plan" option which allows for contractless pre-pay plans. The cheapest version of "Pick Your Plan" is $49.98 (rate plans).

Then, according to TUAW simply taking out your SIM card allows you iPhone to continue to function as an iPod + Wifi device without any further hassle.

Removed SIM entirely. It complains but works at 6G WiFi iPod. Tried placing call. "No SIM card installed". Failed. Connected to iTunes. Synced without any problems I could detect. WiFi fine.

Presumably, you could then cancel your $49.98 month-to-month and use the iPhone as a Widescreen iPod + Wifi device