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Help Phone, no plan

Can I purchase any android phone without a plan, stick a sim card in it, and start using it from there?
I know I won't be able to use the 3G networks and what not but will I be able to make phone calls, send SMS, upload developed apps to the phone or does the phone need to be "unlocked" before it is functional (without a plan)?
 
The problem is the Verizon Droid (in the US) is CDMA only not GSM. There's not even a place for a SIM card. On the Motorola Milestone (the GSM non-Verizon version) you can use a SIM card. Basically, if it has the little verizon check on the bottom, you're SOL.
 
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