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As some know, the iPhone's iPod and WiFi features were not available until you activated your phone with AT&T, be it via iTunes or in store. This obviously meant you'd need a contract with AT&T to use those features, which seemed just a tad draconian.

The clever chaps over at The iPhone Dev Wiki have, along with DVD Jon, managed to work out how to fake the activation of the iPhone, thus allowing you to use the iPod, WiFi and iTunes Sync capabilities without the need for an AT&T contract.

You can find out how to do this here

Note: The sfotware way of doing this currently requires a PC, though it's hoped a Macintosh version may be available shortly.