Yes, it works. No need to jailbreak nor unlock if you don't want to... That is what I'm doing right now. I don't use it to call, just use it for the internet. Unlimited internet is $20/mo... I just have to remember to call 611 or login online at the end of each month to "purchase" another month of unlimited internet. And yes, it is 3G internet in 3G coverage areas... Only annoyance is the message that pops up after every time I use the internet, saying my last transaction cost $0.00
Also, see my other post about the threatening text msg from AT&T...
AT&T Sent Threatening Text Message