MSN homepage top right hand side AT&T offering free phones, free activations.

Always...ALWAYS check out the fine print.
I'd be willing to gamble that the stipulation for the "free" phone would be a 2 year contract that cost more than most others, or some kind of "free when to buy a 'xxxx' bundle package" that contains services you will never need or use.

You don't get something for nothing....it's just a trade off.

I have always had a two year contract. Most are set up that way. If your contract for your present phone has not ended then it is not worth up grading in most cases.

My present phone is four years old and I'm out of contract, so when I renew I will not be paying a fee(fine) to upgrade. :)