In addition to our own Used Handhelds and Gazelle, another place you can sell your used phone is NextWorth. According to a company representative, they're currently offering as much as $255 for used 3G iPhones. After the trade-in value is determined, you can opt to have a check sent via mail or paid via PayPal, or receive a Target or Amazon gift card in the amount of the trade-in value.
iPhones purchased by NextWorth in any condition will be refurbished and resold by NextWorth, keeping the old devices out of the waste stream, thereby promoting recycling and reuse. I like the idea of these services, because there's less hassle and you know you'll get your money.
And — perish the thought — should you get a brand new iPhone 3GS and drop it, help is available at DirectFix.com. They've posted a video on YouTube with step-by-step directions for taking apart and repairing your phone. They already have replacement LCD screens and touch panels available on their website. We expect our first inquiries in the following days, as there are always some that almost immediately drop their new iPhones.