The iTunes Store appears to be overloaded. Or at least that is what the staff at the Kenwood Mall Apple store in Cincinnati, OH.
They are still requiring buyers to connect their new iPhones to iTunes for two (2) minutes before leaving the store. The two minutes is apparently enough time to satisfy some technical or legal requirement. After the two minute buyers are free to head home and activate the iPhone at their leisure—probably some hours from now. (10:09 AM EST, Friday, July 11, 2008).