Thats correct, I have iPhone 2G unlocked and running firmware 3.01 and never had a problem with iTunes or upgrades. I wont pay double the price for an Unlocked version. I just came back from Canada, got two iPhones 3GS 16 GB for 2800 QAR each, there is no way to justify paying 4500 for the same phone.

Vodafone employees can say what they want but at the end its the customer who pays