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if you have the iPhone 3 you can definitely get an upgrade. the 3gs would be $0 with a 2 year contract.
I feel you, but if you're going to sign for another 2 years, you might as well get the 4S or the 4 if you dont care about siri lol
Supported devices are the following:
iPhone 3GS
IPhone 4
iPhone 4S
iPod touch 4G
iPod touch 3G
after seeing what happened to the 3g after iOS 4.0, i would hate to see what happens from iOS 5
