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Root Flash Droid 3 to prepay

Does anyone know how to flash the Droid 3 to prepay from a contract?

Yes and there is an extensive thread on that both here and on XDA.

Guide - Unlock XT862 for T-mobile/ATT - xda-developers

The executive summary is:

Get the unlock code from somewhere, like Verizon if you have been a good customer for 8 months or so.

Stick a GSM sim into the phone and turn it on. It will ask you for that unlock code and you type it in.

Root the phone using MotoFail.

Obtain and flash the Chinese market's XT883 radio software and patch the phone's build.prop to work with GSM.

Set the D3 to GSM only and run off the SIM. ATT networks will get you 3g, T-mobile only Edge.
 
Or you can use the phone as is, with no unlocking, flashing or patching on a Verizon MVNO such as PagePlus Cellular. Just port your number over to PagePlus, do a quick over-the-air programming and add a PIN.
 
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