So, you don't have an iPhone, or do, but don't know exactly what that entails...
In basic form, a 2G iPhone is the "1st Gen" iPhone, released almost three years ago, that accesses the EDGE network, available to AT&T and T-Mobile (if unlocked). It can be easily identified by looking at the back, where it will be a soft silver color with a black plastic piece at the bottom. There are 4, 8, and 16Gb versions, however, 90% of the phones out there are 8Gb versions. Key function differences are no MMS (unless jailbroken and enabled), and no GPS.
The iPhone 3G is the common iPhone, and is still sold by AT&T and apple for $100 with a 2Yr Contract. Basically mechanically they are comepltely different, but hold the same components. What does that mean? There is no hardware difference as in faster processor, or more memory, etc, but it was completely redesigned so that a few key things such as repair-ability and antenna usage could be improved, except that the phone can now utilize GPS. There are 8 & 16Gb versions, but you can't get the 16Gb anymore (so that the 3GS sells). Most iPhoen 3Gs will be balck in color, but occasionally you will find a white one available, only in the 16Gb model. While by default you cannot do some of the controls that the iPhone 3GS does, if you jailbreak there are ways to make it happen (such as video, and voice controls). Disadvantages of the 3G (and 3GS) is due to the 3G requirements for the network, your battery life will suck in comparison to the 2G, if you upgraded. However, if you are running low on battery life, you can disable 3G and just use edge... will increase the battery time left exponentially!
The 3GS is a little re uncommon, and comes in 16 and 32Gb models. The biggest features people want/use on the iphone 3GS is the video mode, the enhanced GPS (connects to more satellites for better triangulation), and Voice Controls. Some find the headset controls handy too that work with the iPod and some streaming music players. The hardware on the 3GS is enhanced, basically, a faster processor and more available memory to the device to use for running processes (less crashes). Also, Apple improved some minor details for obtaining back some of the wifi losses between the 2G and 3G.
Sure, there are more differences than that, but I just wanted to write an overview so that you can identify differences and maybe choose better which iPhone you get. Feel free to ask questions!
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