"It's such grief and aggravation," says Frederick Smalls, an insurance broker in Whitman, Massachusetts, who spent two hours on the phone with Apple and AT&T while trying to get his new iPhone to work. "On the iTunes front, yes, we see intermittent issues there still," admits an AT&T representative. "We are suggesting to our customers that, after purchasing their new iPhone and voice and data plan, they synch the device later at home while Apple works hard to resolve the iTunes issues." In fact, people have waited long periods at counters to get their phones activated, while lines have stalled behind them. Many customers had previously camped out for several hours in line to be among the first with the new iPhone 3G. Owners of the original iPhone, having endured their 2007 problems, have also had issues today. The iPhone 2.0 software update -- which promises new functionality such as native applications -- also requires reactivation through iTunes, leading to the same activation woes. The iPhone 3G launched in 21 countries on Friday, creating a global burden on iTunes servers. The server troubles follow Thursday's MobileMe misfire, which has left some services still unavailable, with posted updates stating that the "transition is underway," but it is "taking longer than expected." iPhone activation errors are also being reported in the UK, with server outages forcing customers away from O2 and Apple stores. In Canada, Rogers Wireless -- the sole Canadian iPhone provider -- has had severe issues, with servers crashing from a large activation volume. Update: Some stores are performing manual over-the-phone activations to restore service for new customers, while other those upgrading to the new iPhone are "still held up, and they are waiting for confirmation," although no ETA is available.