So after a visit to the local store, I have enabled mms on my phone.
There are a few other threads that mention getting a Go phone but I was too cheap to spend the $20. So what I did was go inside the At & T store by my house. After talking with the guy for a few, I got him to give me a Motorola RAZR V3 out of the recycling box in the store (its where people give them their old phone when they upgrade) for FREE.
So when I got home, I swapped out my SIM into the RAZR and reset it. Next, I made a few calls to my house phone. After just 10 minutes, I logged into my AT & T account and saw the new RAZR listed as my device. I just went to features and selected the messaging plan I wanted. It automatically removed the iPhone text plan for me too. The 3G data plan was in another section and there was no option to deselect that from the plan even if I wanted to.
Last, I opened swirlymms and used the following settings...
MMSC: http://mmsc.cingular.com
Proxy: wireless.cingular.com:80
APN :
username:
password:
From there, I sent a few messages with the RAZR. After 3-4 messages, I put the SIM back in the iPhone and was able to send messages. At no time did I speak with a rep on the phone or make any other changes.
So in summary...I have working mms and 3G data plan.
Good luck everyone.