Are you required to re-activate your phone with a firmware update?
I don't recall offhand if you do or not. Long story short, my phone is my only internet connection for a week or two (tethering via pdanet). I can download the firmware fine and everything but I'm worried that it wont let me use the phone if it needs to go online to active.
I know that you need an internet connection with a full factory restore, but do you need it if you're just upgrading?
Yes, I just learned the hard way today! I'm stuck in the rural country and don't have internet, I was tethering with PDAnet as well. Luckily I could run to the local library and activate it