Selling new AT&T phone to cover new iPhone cost...

[GA_RR]

Looking for a little advise, I'll try to make this as brief as possible.

I am on a family plan with my wife. I have a 1st gen iPhone and she has a regular cheap samsung flip phone. Under our online account I show that we are both eligible for a discounted new phone at this time (I don't believe we are out of contract, just through the 18-20 months of a 2 year or something). Anyhow, my end goal is to purchase a 3G phone for myself and pass along my old iPhone to my wife. From what I read I'll have to purchase the new iPhone for myself as my discounted phone which will put me back in a 2 year contract. What I'd like to do to help offset my costs a little is purchase another phone at a discounted/free price for my wife and sell it unused on ebay or something and then just transfer her SIM and account to my old iPhone.

As far as I can tell this wouldn't be violating any rules of AT&T but if it does I'd like to be aware. Also, could anyone suggest what phone I should choose for her that would most likely make the most profit? Seems like I could do better buying one of the more expensive PDA phones for around $100 after discounts which might sell for around $300 new on ebay rather than a bottom of the barrel free phone which I would guess wouldn't go for much, but I don't know.

TIA

[pokekid]

lg shine has a great resell value right now. you should be able to to give her your iphone as long as you get the data plan for it.