Do not attempt to upgrade to iPhone/iPod touch 2.0 Software yet
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Do not attempt to upgrade to iPhone/iPod touch 2.0 Software yet

The iPhone Software 2.0 updater is completely different than earlier updaters, in that it completely erases all of the data on first-generation iPhones in order to perform the new software install, and therefore temporarily deactivates them as well.

Once the iPhone 2.0 software install finishes, iTunes then tries to connect to Apple's remote iTunes servers and authorized a reactivation of the phones. However, those remote iTunes servers are the same servers being pounded with requests from hundreds of thousands of new iPhone 3Gs that being activated around the world today. As such, Apple is currently experiencing serious issues with its iTunes servers, which have largely become unreachable, reports AppleInsider.

If you attempt to update now, you could end up with a bricked iPhone until Apple gets their server working properly again.

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