Once the download finished, I took the plunge and started my upgrade.  The main process of the upgrade finished in about 20 minutes which included backing up the iPhone data, verifying the backup, restoring the new firmware, verifying the firmware, and then restoring my data back to the iPhone.  Then the time came to reboot the phone.

The iPhone reconnected back to iTunes and now came the activation process.  This is were it all went down hill.  Apple was having issues with the iTunes Store activation process.  Apparently, too many people trying to do the same thing.  So then, I had to wait and see when the iTunes Store would be back up to finish the activation.

iTunes store back online, activation processed immediately, now I am done.  Upgraded and working well!  All my content is back.  Pretty smooth I would say.

Apple released an upgrade to iTunes in preparation for the launch of the iPhone 3G set to be available tomorrow morning at 8:00am.  The new version of iTunes (v7.7) now sports the AppStore where you can download and purchase applications for the iPhone.  

Moreover, at any moment, the updated firmware for first generation iPhones is set to be released (v2.0).  Apple also today launched the new .Mac service renamed MobileMe.  To visit any of these mentioned technologies, follow the hyperlinks.