You might not be out of luck. Cody's dad bought a 3G phone and had some puny problem with it, and the AT&T rep (no Apple in Santa Barbara - yet) told him he needed to just buy a new one, and his dad being who he is, just bought one. He's like a kid with some money who just discovered technology and has to buy everything cool as well as everything useless. There is no problem with the phone he had, so he offered it to us, and I have more use for 3G than Cody, so he told me I could have it.
So I'm getting a 3G, so we'll have a space 16GB first gen, unless Cody wants the 16GB, in which case we'll have a spare 8GB. However we might use the spare for developing and testing things, though I think I'm more in favor or selling. What are you looking to pay? I can run it by him.