It's no great shock that AT&T and Apple are having problems activating the first wave of iPhone 3G accounts, but now even old iPhones are being turned into the bricks?
It's true. it's true.
Basically at issue is the iTunes servers used to activate iPhones is down at the moment, so original iPhones trying to update their phones to the iPhone 2.0 software, are going from using working software to unworking software, renduring their iPhones to temporary bricks.
The solution? Well while Apple is working on a solution from their end, if you want to buy a new iPhone or upgrade the software on your old one my advice is to do so... on Monday.
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