Yes it is possible to re-jailbreak and unlock, since that is the first iPhone. And you cannot just jailbreak and make it an iPod. It will always remain as a phone. It is up to you if you want to use the calling feature or not
I don't know the proper terms.
We took out the sim because no one wanted to use it.
But we had to get around the emergency calls only screen.
what is the lastest software this thing will run??
And thanks again