Yes it will. You need an AT&T APN on the phone just like you needed one with T-Mobile at least if you want to use data. 3G will work also.
Data on prepaid is metered so don't expect the same 3G speeds as post paid.
I was using a prepaid account on my 3G from June until December with no problems. 3G would test out at about 40Kbps on the prepaid and 2.8Mbps on my post paid, so you see prepaid 3G is much slower.