Apple iTunes Store failure during 3.0 update.

Well this isn’t going so well.
I’m all excited about the iPhone 3.0 update. I docked my iPhone, started iTunes and saw it download the update pretty quickly. This is good, I think – that means the servers are handing out the updates just fine.
Not so fast. The update appears to have gone just fine.
The problem is there’s another step that is apparently hammering the bejeezus out of the iTunes store, and is failing to allow the phone to be re-activated after the update. My phone currently has the USB->iTunes connection graphic on it (“Connect me with iTunes!”), with an emergency-use-only slider.
Until the iTunes store gets unpaniced, I have a useless phone.
Thanks Apple.
(**Update**: Apparently I’m hardly the only one seeing this.)
(**Update again**: It appears to be the activation server that is getting hammered. Not sure if this is an Apple problem or an AT&T problem)
(**Update the third**: I made it. You just have to keep trying on the activation screen. Eventually it’ll get through, and things look fine now.)