Bypass Verizon Activation - bibanon/android-development-codex GitHub Wiki
Like all Verizon phones, you will have to make a special call to Verizon to activate your phone before using it. What you may not know is that there is a way to bypass this screen, if you don't have a contract with them.
When you see the screen that tells you to call to activate just hit call to activate, wait a few seconds, and press end call as soon as it starts calling. The Droid will beep three times if it "failed" successfully.
Afterwards, press Try Again and repeat this 4 times. Sooner or later the Droid will give up and bypass activation.
You can now use your Android with Wi-Fi as a conventional multimedia device, perhaps like an iPod Touch, without needing the Verizon service.