A couple of years ago there was a story a day about people doing this with their iphones. Usually they walked around after the thief. Saw one where the guy left an iPad on a plane and they wouldn't go back and get it for him. He watched online as it went to another airport and then home with someone.
hmm, I hadn't noticed that new development, apparently I still have to pay on 3gs.
I'm not 100% on this, but I set it up on my wifes phone the other day. Make sure it's on OS 4.2 and then add a MobileMe account in the Settings. Login with your Apple ID. It should show only the Find Phone feature available (not the usual email, contacts, bookmarks). That's it. There is a Find My Phone app you can run to find other devices.
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