I've used a variety of GSM phones on my Cingular accounts, and they all work fine so long as they work at the right frequencies.
In Cingular's mild defense, in some areas they're various combinations of GSM 850, GSM 1900, and still some TDMA 800 and 1900. Most used GSM phones are GSM 1900, maybe with Euro 900 and 1800 mixed in, and they won't work on Cingular's largely GSM 850 network.
Even the wrong Cingular phone can fail to work on their own network, e.g., I just bought a used Nokia 6340i and the seller accidently sent me a 6340, with the difference being that the 6340 doesn't do GSM 850 which is what Cingular uses around here, so it only gets a faint signal from an ex-AT&T GSM 1900 cell ten miles away. Oops. I took one look and knew what was wrong, but a non-technical user could easily leap to the wrong conclusion about what his problem was.
That's not even true. When my wife lost her phone last month, Cingular was happy to sell me a new SIM chip to use in an unlocked T-Mobile phone I had lying around.
R's,
John