You can use the SIM card, but I've found the SIM card system very restrictive. My preferred way would be to sync your Palm with something like Entourage (I don't know, dont have a Mac or a Palm) or if you can, direct to a service like Google Contacts. Then, when you use the iPhone, either use Exchange Sync like Google says to, or on the Contacts tab in iTunes, you can select to sync your contacts with Google Contacts, as opposed to a program. Hope this helps...
Transfer all your contacts into your sim card first and than insert your sim card into your Iphone and retrieve all your contacts by loading your sim into your iphone
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