Apple and AT&T Stores Having Difficulty Activating iPhones (UPDATE: It's the iPocalypse).

"The source of the iTunes crash/slowdown seems not be those buying iPhone 3Gs from Apple/AT&T stores at all but the millions of people updating to the new firmware at home. Firmware 2.0 isn't like other firmwares in that it needs to update the phone and reauthenticate the service. And in turn, when the servers are slammed and the phone reaches for reauthentication, the server isn't always there to reactivate the service. This is how some of those newly bricked iPhones are occurring, and a source tells us that even first gen iPhones are susceptible."