In a repeat of last year's problems, it looks like the insane demand for the iPhone 3G has taken its toll on Apple's iTunes activation servers -- that's a picture of iTunes locking up in the Chicago AT&T flagship earlier this morning. We're hearing that the servers are now definitely down after being intermittently active for the past few hours, and that customers are either being turned away or sent home from both Apple and AT&T stores to activate at home using iTunes. That's especially interesting since it suggests that AT&T was insisting on in-store activation to thwart unlockers, but for right now the real news is that lots of eager iPhone 3G buyers are stuck with two useless phones, since upgrading from a first-gen unit disables the SIM. Ouch. We'll keep you updated.

Update: Apple has confirmed to us that activation is down, and that customers are being asked to take the phone home and activate via iTunes later. We're not sure what good that'll do, since the servers are down no matter where you are, but Apple says it's "working on a solution." In the meantime, it looks like the new SIM works in first-gen units, so at least upgraders aren't totally phone-deprived. Oh, and remember that updating a first-gen iPhone to 2.0 requires hitting the server as well, so if you haven't taken the plunge we'd say hold off until this all gets sorted.

Update 2: In related news, those updating their first-gen iPhone to 2.0 are also getting caught in the activation shuffle, leaving some with bricked iPhones. In our test case, the activation servers came back up after about 45 minutes just long enough to get 2.0 running on our first-gen iPhone, but not all have been so lucky. Is your first-gen iPhone stuck in activation limbo from the update? Let us know.

For the smattering of Canadians wealthy enough to pick up an iPhone 3G from Rogers Wireless without worrying over the lack of an unlimited data plan, we've stumbled across what appears to be internal verbiage detailing the in-store activation process. Quite frankly, there doesn't seem to be any real surprises here, but it is somewhat interesting that retail locations will be required to download and use a special version of iTunes with an "Activation Only Mode," which will enable employees to unbrick the mobiles before customers leave. In any case, feel free to hit the read link if you're anxious to know exactly what the sure-to-be-hair-raising experience will be like come July 11th.

[Via GearDiary, thanks to everyone who sent this in]

As the dust settles on the iPhone 3G / WWDC blowout, we've sifted through the debris and discovered a few eyebrow-raising tidbits you might be interested to know. The first of which is news that the next firmware update (2.0) could be headed to devices as early as June 27th, at least according to Apple's Australian iPod touch features page, which touts the arrival of the app store later this month. Meanwhile, Apple's cash cow won't get those OTA iTunes music downloads that were being heavily speculated on in May. Word on the street is that record labels are -- wait for it -- still holding out for those upped premiums, or that AT&T wants a cut of the action, which Apple is reluctant to hand over. Of course, AT&T wanting their share of that revenue makes good sense when you realize that the telco is taking a major hit on the sale of these devices -- a hit which will stall profits until 2010. Perhaps that explains the new rules about activation; according to a report from Reuters, the company will penalize customers who buy a phone but don't activate within 30 days, which falls in line with their aggressive new push to lock users into a contract... which looks exactly like the old cellphone business model. On a lighter note, iLounge has some real-world spy shots of the device's shell, which they claim smudges like it's going out of style, though it may be joined by a Product (RED) variation later this year. Enjoy!

Update: Apparently Apple reps have confirmed that there won't be any early firmware updates for the masses, and that they're still on schedule for July 11th. The Australian site has since updated its info -- so put the champagne back on ice.

[Thanks, Dan and Danny]

Read - Australian iPod touch features page
Read - No Over-The-Air 3G Music Downloads For New iPhone; Labels Holding Out For Higher Price Per Track?
Read - iPhone to cut into AT&T earnings until 2010
Read - Real World Photos: Inside + Outside iPhone 3G's New Shell

Like many, you were probably planning on hanging back, sipping on Bacardi 151, and waiting for your new iPhone 3G to arrive in the mail following a timely pre-order. Unfortunately for your foot-kicked-onto-desk plans, Apple and AT&T have something else in mind. Word on the street is that you will not be able to purchase and / or activate a new device via any other method than in-store, thus doing a full 180 on the way the dream team was doing business last time around. So not only has Apple's revenue sharing gone into that good night, but it appears the innovative DIY activation that was such a big deal this time last year is shuffling off as well. So what gives guys? And more importantly, why are you making us leave the house? Hear what AT&T reps had to say about it after the break.

They've finally, really done it. Your good friends in the hacking community have apparently come up with a solution to get you Vista -- should you want it -- activation free. According to a report, there's now a cracked, full version of Vista floating around that totally circumvents that cumbersome and costly activation process. The crack supposedly stems from OEMs (and end users) that were fed up with that process, and somehow persuaded Microsoft to pull an up-up-down-down maneuver and make the OS work, sans activation. The software utilizes System-Locked Pre-Installation 2.0, embeds OEMs BIOS files (signed by Microsoft), and passes all of the company's Windows Genuine Advantage checks. Of course, maybe it's possible that the folks in Redmond care more about users adopting Vista than they care about them paying for it. Nah, probably not.

Update: According to our suave, stylish, and clearly informed readers, this hack has been floating around for some time. So for those who know, feel free to move on, otherwise; check it out, Vista activation bypassed!

[Via Techdirt]

Are you a Japanese Windows user? Did you just buy an iPod touch? If you answered yes to both of those questions, you may find yourself in a boiling rage in a matter of moments. Apparently, you are unable to unlock your new WiFi-device / media player if you're using Japanese Windows -- the player just remains in the holding pattern of a "connect to PC" prompt when you hook it up to your computer. According to reports, Apple Japan has yet to issue a statement or updates to solve the problem, which is causing a number of Japanese buyers to take matters into their own hands. Word on the street is that lines have been forming outside of Apple stores, where new buyers are taking their useless touches to be brought magically to life by the in-store Macs. First the screen problems and now this? Come on Apple -- get it together.

Update: The crack team at Engadget Japan has learned from Apple that an update coming later this week will fix the problem, though they have yet to make an official announcement. Also, it sounds like other foreign Windows users may be experiencing similar problems. If you're having trouble -- let us know.

[Via Impress]

Mark "Rizzn" Hopkins' internet ordeal is over, and he has detailed all the painful, laborious, and clearly unnecessary steps needed to put yourself into Cashville with AT&T's cheap-o DSL service over on his website. In the end, the poor guy spoke with what appears to be hundreds of the company's employees, had to "pay" $79.99 for a router (although they offer a mail-in rebate reimbursement), and forked over $50 for AT&T's "activation fee", yet still technically doesn't have service. Regardless, when he's paying a measly $10 $18 a month for his phone and DSL service, and you're still Go-Go dancing on weekends just to cover your voicemail charge, who will really have the last laugh? Hit the read link for all the painful details....

An AP report out today claims that AT&T has made "technical adjustments" to correct problems with its "overloaded servers", which have been making it hard or impossible for new iPhone owners to activate their device -- and as many of you know, a non-activated iPhone is essentially useless, save for emergency calls and showing off to your friends. A spokesman for the company said that while there have been problems with getting users up and running, nearly all customers have been able to activate their phones within five to eight minutes -- though we suspect that information will just be salt in the wound to people who are still having trouble. The rep also stated that the company is expecting new gears for its steam engines any day now, and that the laborers who shovel coal into its furnaces have doubled their efforts.

We heard yesterday that despite some issues over AT&T way, iPhone activations would (hopefully) be up and running smoothly by as early as this morning. Of course, evidenced by the flood of users continuing to tip us, we'd say a great deal of you are still experiencing activation problems. We've flipped the switch on a half dozen or so iPhones, and had no problems whatsoever. So to all you new iPhone owners out there, are you (still) having issues?

We've been hearing scattered reports some that newly-christened iPhone owners are having a heck of a time finalizing the activation process in iTunes. That sucks for a couple reasons: first, these puppies are darned near useless without being activated, and second, it seems the procedure is hanging after the point at which existing customers' current SIMs are deactivated. So yeah, long story short, there's a few people out there left phoneless while AT&T gets its act together, which it's been said may not be until morning. Burnin' the midnight oil over there, O Masters of Activation?

Even though they could probably charge $500 a month for service and still sign up a grip of Apple fanboys, AT&T has announced that it will be offering the iPhone for much more reasonable rates, starting at just $60 for 450 minutes and "unlimited" data; that's right, the data plan is wrapped up nice and tight with voice service in your obligatory two-year contract. Scoring 900 or 1,350 minutes will set you back $80 and $100 per month, respectively, although no matter what plan you choose, you're getting 200 text messages, unlimited mobile-to-mobile calls, and a ton of night and weekend minutes (5,000 for the starter plan, unlimited for the other two). If you're unfortunate lucky enough to be stocking up on iPhones for the whole family, shared bundles of 700, 1,400, and 2,100 minutes (all with 200 SMS messages and unlimited night and weekend calls) can be had for $80, $100, or $120 plus 30 bucks per line. Finally, to keep existing customers from going crazy waiting for their contracts to expire, AT&T is also offering its current subscribers a $20 option to tack on the iPhone data plan -- which goes up to $30 or $40 if you need to jack up your SMS limit to 1,500 or unlimited messages.

In more good news -- well, depending on how you look at it -- Apple has announced that customers will be able to activate their new phones via an iTunes sync, saving them from spending even an extra minute in an AT&T store they will have surely have grown to despise. On the down side, if you do have problems with your activation -- remember those initial iTunes / Vista issues? -- it'll be just that much more difficult to troubleshoot as you and two million other frustrated users flood AT&T's customer service line simultaneously. Good times, folks, good times.

Update: That's some, ah, good journalism there Lou. Apparently there are actually six packages each available for both of the individual and family plans, as reader Christopher K. noticed by simply clicking on the "More Minutes" button at the bottom of those plans' respective tabs here. Heavy users will be also be able to choose from 2,000, 4,000, or 6,000 minute bundles for $120, $170, and $220, respectively, with families getting 3,000, 4,000, or 6,000 minutes for $160, $210, and $310, also respectively.

Read - iPhone rate plans
Read - iTunes activation

[Thanks to everyone who sent this in]

Those are the words of Brian Livingstone, a renowned expert on the inner working of Microsoft Windows: in a post on WindowsSecrets.com, he exposes a backdoor route around activation which effectively destroys activation as an antipiracy measure. That, in and of itself, isn't a particularly surprising development (we've already seen two exploits that skip or bypass activation); no, the real story is the fact that the exploit was created by Microsoft itself. The "SkipRearm" process involves some simple editing of Registry files that can "extend the activation deadline of Vista indefinitely." This backdoor around WGA was created to help corporations keep machines working whilst they work under the heavy burden of prepping systems for Vista activation. If they can't do it within Vista's 30 day grace period, they can postpone activation by 30 days up to three times using the "sysprep /generalize" command: SkipRearm can be executed indefinitely. Specifically, Microsoft documentation says "Microsoft recommends that you use the SkipRearm setting if you plan on running Sysprep multiple times on a computer." Now that Windows Activation could potentially help pirates as well as annoy legitimate Windows owners, it's hard to see how Microsoft will be able to continue to justify using this ineffective, draconian system.

[Via ComputerWorld, thanks to everyone who sent this in]

Strike three two for Vista's product activation system: the latest Vista activation workaround is called "Timerstop t2a" which works by automatically renewing the 30 day grace period before the user has to "activate" their presumably legit copy of Windows. Besides the obviously malicious undertone to these kind of utilities, we're certain that there are a whole lot of legitimate Vista owners out there that would prefer to go through this admittedly complex process rather than attempt the normal activation procedure. Just like with DRM, anti-piracy PSAs before movies, and heck, even excessive surveillance, innocent people tend not to like it when they're treated as suspects. The lesson for Microsoft is that when people want to pirate software, they will: even in the face of increasingly complex activation systems. A pity then that Redmond's fired up photocopiers technically can't copy a function that -- purposely -- doesn't exist in Mac OS X.