do i need to make a contract or not??

Yes, if you do not currently have service with AT&T, you will be required to sign a 2-year contract, regardless of the location you purchase your device from.

yes, you do...

no feautres on the iphone will work until it is activated at a carriers store with a contract..

if you're looking for the feel of an iphone but without the phone, i would recommend the ipod touch

i heard you cant hear as well on the i phone and i am guessing you dont have to because you can just by the phone itself but if you arnt using the phone get a itouch its the same but cheaper