You may be better off purchasing from T-mobile this device... It's a WiFi router and a phone gateway.
They're both $39.99 right now at t-mobile.com.
This one I believe just lets you plug in a regular telephone to an internet connection and use a regular phone that way. But I imagine this isn't what you want.
This one will do the same thing, and if I read it correctly, will allow you to use "hotspot enabled phones" (G1 is one of these, AFAIK) to make calls. It's not a GSM repeater, but it should serve your purpose, and probably better than other VoIP solutions.
Aside from that, I don't know of any VoIP software for the phone (yet) but I'm sure someone's working on it.
HIH and GL. YMMV.

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