Welcome to the iPocalypse.
Reports are flooding in from Gizmodo (which posted that clever Apple meets Armageddon phrase), TechCrunch, the IDG News Service and pretty much any other iPhone-manic news outlet that stalwart Apple fans who rushed to buy their new iPhone today are left holding beautifully designed bricks that can't be activated.
Apple's network reportedly can't handle the huge flood of phones hitting it today to activate and pull down the 2.0 firmware. Sounds an awful lot like what happened with Firefox's Download Day last month - I bet the Mozilla folks are nodding their heads knowingly.
CrunchGear has two potentially helpful posts for eventually getting the update and fixing an iPhone that's stuck in a reboot cycle after a failed update that might help you out if you're an unlucky iBrick holder.
For the rest of us (yep, I'm jumping on the bandwagon), your best bet is to hold off until the traffic spike dies down before heading off to buy your own new iPhone.