I was thinking about getting the new Apple I-phone G3. Unfortunatley I already have a contract with T-mobile and have more than 1 year left, and don't plan on paying $200 to cancel my contract. And I would wait for someone to come out with a jailbreak but from what I hear the AT&T Sim card is built right into the new I-phone which might take awhile to jailbreak.

I've done a little research and have found that T-mobile will be offering the I-phone in Germany. I was thinking I could order the phone from Germany, maybe on ebay, and get it unlocked for international use. Would this work? If not, any ideas?

Yes it would work. But the unlocked iphone 3g are said to have the retail of close to $650. So in some sense it may be cheaper to get yourself out of contract by paying $200 and getting a new contract with at&t for another $200. So with that you are only out $400 with native 3g. Besides if you get an unlock iphone 3g on t-mobile, 3g part will not work because tmobile does not have 3g support nationwide - I think only in NYC, not sure.