Problems with Apple's iTunes activation server has wreaked havoc on the first day of Apple's much-anticipated iPhone 3G debut. The Apple iTunes server apparently couldn't handle the demand from new users signing up for service and shut down.

As a result, AT&T stores are telling iPhone buyers to go home and sync with iTunes later in the day.  Customers who buy an iPhone still need to sign up for a plan at an AT&T store. But to actually use the device, it has to be activated through iTunes.  As of mid-afternoon Friday, new iPhone buyers were still reporting problems connecting to iTunes for activation.

For more:

- See this CNN story