So, after having my iPhone for almost a couple of weeks, I regretted buying the 4GB version and wanted to get the 8GB version. I didn't think I would need 8GB until I started playing around and converting my DVDs to iPhone format. Now, I wish I had 80GB. 
The only way to do this (aside from a hack) is to return the phone and buy the 8GB version. The Apple store allows you to return your iPhone within 14 days of purchase but sock you with a 10% restocking fee. It was a $50 mistake for me but I figured it was better to take the loss now while I still could. So, that is what I did.
If this is something you are thinking of doing, I would recommend making an appointment with the Apple store before going in there. It is not as simple as walking in and doing a simple exchange as I expected. There is a lot of processing work that needs to be done by Apple in order to get the service transferred to the new phone. If you don't have their help, you will need to first buy the 8GB version, the go home and get it activated, then go back to the store and return the 4GB version. BTW, don't waste any of your time with an ATT rep. They have no idea what is going on over there.
I am happy to say that all of my settings on the phone after the transfer remained the same. The only thing I had to do was re-enter my passwords for my e-mail accounts as well as my WiFi networks but the rest of those settings were still there. One thing I did loose were all of my pictures on the camera roll. Strangely enough, I did not loose anything in the 'Notes'. Everything else including stocks, weather, clock, etc. were all still set up as I had it.
All-in-all, I would say it was a fairly painless process. As I said before, just make sure you make an appointment with the Apple store before you go in so that they can do the transition for you. Otherwise, you are looking at a fairly painful process.

The only way to do this (aside from a hack) is to return the phone and buy the 8GB version. The Apple store allows you to return your iPhone within 14 days of purchase but sock you with a 10% restocking fee. It was a $50 mistake for me but I figured it was better to take the loss now while I still could. So, that is what I did.
If this is something you are thinking of doing, I would recommend making an appointment with the Apple store before going in there. It is not as simple as walking in and doing a simple exchange as I expected. There is a lot of processing work that needs to be done by Apple in order to get the service transferred to the new phone. If you don't have their help, you will need to first buy the 8GB version, the go home and get it activated, then go back to the store and return the 4GB version. BTW, don't waste any of your time with an ATT rep. They have no idea what is going on over there.
I am happy to say that all of my settings on the phone after the transfer remained the same. The only thing I had to do was re-enter my passwords for my e-mail accounts as well as my WiFi networks but the rest of those settings were still there. One thing I did loose were all of my pictures on the camera roll. Strangely enough, I did not loose anything in the 'Notes'. Everything else including stocks, weather, clock, etc. were all still set up as I had it.
All-in-all, I would say it was a fairly painless process. As I said before, just make sure you make an appointment with the Apple store before you go in so that they can do the transition for you. Otherwise, you are looking at a fairly painful process.