I have an opportunity to purchase a de-programmed cell phone here in the US. (something like that). The idea is that I get a "SIM card" in Europe and then I use that and just charge it when it runs down. Incoming calls are no charge and outgoing ones are pre-paid and at significantly lower rates that what we'd pay through AT&T, etc.

Does anyone have any clue what I'm talking about, and if so, am I better off renting a phone once I'm there? I can get the phone (without the SIM card) for $99... Thanks.

Hey Dru, jer here. Well, I would be sure the phone is going to work with a SIM card here before making the purchase. Indeed the system is better here than it is in the good old "U.S. of A" where they charge you for incoming calls (or at least they did the last time I lived there). Here in Spain you never get charged for recieving calls, if anything some companies give you call credit money each time someone else calls you (seriously! Airtel just came out with a program where if another Airtle user calls you, you get 5 pesetas in calls credited to your account). The cell phones work with one operator or another (Telef�nica, Amena, Airtel, etc...) and either a contract (monthly fee)or pre-paid SIM cards as you said. The best deal for you would be a "libre" (free) one, which means you can use them with any prepaid SIM card from any operator. Make sure the phone you are buying is free and can be used with any pre-paid card. I bought my phone here and it is "libre" and I use Amena pre-paid cards. They sell them in credits of 2.000, 5.000 or 10.000 ptas. just about anywhere here in Madrid and you can not get ripped off because the stores sell on commission and can not charge more than the face value of the card. If the phone you bring is digital and not analogical (ie. uses a SIM card and not just a PIN number to an account), then you should have no problem. One last thing, you may want to think about buying the phone here since you can get cheap ones for less than $100 and if you buy it here you will be assured that it will work.
take care and see ya in Madrid,
jer...

Cool. One less thing to pack. Would I go to Corte Ingles or El Rastro or just about any corner store?

Hola, my daughter has an English cell phone, but bought a Spanish sim card on pay as you go, as Jer said they do not charge for receiving calls and proved to to be best method. I saw top-up cards in lots of shops and also in the tobac stalls and shops. But if you can buy whilst in Spain as already said phones are cheap.