sync old iPhone

I just activated my new iPhone 4 and would like to use my old original iPhone 1G like an iPod for my kids. I've wiped that old iPhone clean ("Restore" and delete data) and am ready to load it up with movies and games.

I understand I'm allowed to sync multiple devices to one computer, so no worries there. However, when I go to sync my old iPhone I'm asked to set it up fresh, and it shows my current phone number (see attached screenshot).

Question: If I set up this old iPhone will iTunes set it up as my mobile phone on my current number? Or is there a way to keep it away from my mobile phone account (Verizon) on which I just set up my new iPhone? Please advise.
screenshot-iTunes.png
PitaMariaAsked:
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jayasankerCommented:
So i assume you don't have a valid Sim in your old i phone, in that case it can't activate with verizon service

also check discussions

http://discussions.apple.com/thread.jspa?threadID=1715395
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