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Thanks for the info...

here is how they are unlocking them

http://www.howardforums.com/archive/topic/756978-1.html

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Here some more info...

http://arstechnica.com/news.ars/post/20060217-6205.html
Prepaid cell phone provider tries DMCA smackdown
2/17/2006 12:31:05 PM, by Eric Bangeman

Almost every cellular provider sells its phones at a deep discount when you agree to sign up for service—either on a contract or prepaid. In the case of TracFone, they sell locked Nokia handsets below cost and then make their money by selling prepaid minutes. So far, so good. In the fine tradition of American entrepreneurialism, Miami-based Sol Wireless Group saw a business opportunity and began buying phones from TracFone, unlocking them so they can be used on any network, and then reselling them at a tidy profit.

When TracFone discovered that its Nokia 1100 and 2600 phones were being resold, they hired a private investigator to, well, investigate. After negotiating the purchase of a handful of phones, a PI went to the Sol Wireless store:

~SNIP~