No, it does not need service so it should work in it's current state.
There are quite a few posts on getting dev phones to work, so with
some searching I'm sure you can find one and get the issue resolved.

On Jan 18, 12:49 pm, heretic619 <[email protected]> wrote:
> I have a myTouch 3G that currently is not connected to any service. I
> have been trying to use it as a dev phone but eclipse wont see it as
> proper target device. Does it need service for it to work?
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