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unlocked cell phone question

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If I were to buy an unlocked cell phone here in the states, say this one from J & R-, how does it work overseas? Do I go to a store in Germany (where I will be working for 2 months this summer) to buy a SIM card to fit the phone? Does the SIM card come with a certain amount of minutes for using for local numbers in Germany? Am I sure to be able to find a SIM card in Germany for this phone?

Do I just use my AT & T cell phone for texts and/or calls back home if needed? I am hoping to use Skype and email to save costs to home. Any ideas or suggestions? When I have traveled before it was for shorter times and I just got international calls on my plan for the time I was away. Thank you!

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