It IS quite possible to lose an iPhone. I lost mine last Sat. night, but got it back within 15 minutes. Piece of junk Case-mate Signature Case came apart where you screw in the remove-able clip, and the phone, w/ the case, fell without me noticing at a parking lot. Got home realized what happened, so my wife and I drove back, and on the way my wife called my iPhone. A guy that found it answered and waited 'till we got there, gave the guy some cash and thanked him......whew!
So it is possible to find an iPhone, but I also think it's possible to find the owner.
Well apparently the phone in question is not receiving calls from the owner. So ballu611 is just going to keep it and get it activated. Did it have an owner that is trying desperately to call it in hopes of finding it? Or is this phone one that fell off of a truck and now needs to be activated in an underground manner? I'm hoping to never lose mine. I guess I should have said that the phone we are talking about in this topic is most likely not a "lost" phone. What did the people who you called from the contact list say? When you call those people and explain you found a lost phone, someone will get the situation taken care of. That is why I am jumping to the conclusion that this is a stolen phone.
If the phone has been reported as lost/stolen and you try and activate it, you will get busted. For your own benefit I would turn it in. And if you were honest, you could look up "Mom" or something in the phone, call her, and ask her how to contact her son.
The lesson everyone should learn from this is to put a PASSWORD LOCK on your iPone. If you lose your iPhone, chances are you'll ultimately be more sorry about the info in it being browsed by some stranger than the phone itself being lost. Believe me, I know... I had a Treo stolen from me and it had TONS of information (email, contacts, notes, etc, etc). Granted the iPhone doesn't support holding as many kinds of things as a Treo(don't get me started on this), but the point is still that you need to secure that information with a password. Otherwise, you'll feel quite violated if you lose it or it's stolen.
Another serious thing that's missing from the iPhone is an easy way to put an "If found call ..." type of message on the main screen.