Your help would be really appreciated.
Thanks and cookies!
Yes, and it's really easy to do. Just "Restore" that phone to factory-fresh and don't restore-from-backup afterwards. Set it up as a new phone instead.
Auntie has a 3GS she uses like that, and it's great. It has all the iPod touch features and works with GPS. That's super for all kinds of run-tracking apps and search-by-location ones, like Yelp.