Up until today, there was only one iPhone in my household. This has changed. Now there are three iPhones, two of which are 3G S. And one of them is mine. I guess having two daughters helps with disposing of the old iPhone.

Moving all my contacts was easy. All I had to do was back-up my old iPhone using iTunes, then insert the SIM card into the new one. iTunes asked me if I want to restore from the backup or initialize the phone. I opted for the restore, and few minutes later I had all my contacts, messages and applications on my brand spanking new phone.

As far as my old iPhone was concerned, I erased all the contents from the Reset menu. It took about an hour to do so. Do not really know why but the process finished without a problem, and I was able to set it up as if it was a brand new one.
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Without wax,
yOOrek