I started my morning by plugging in my Verizon Wireless USB720 EVDO modem into my Cradlepoint WiFi/EVDO router.  Booted up my MacBook Pro, plugged in my first gen iPhone and checked for updates.   There it was.  2.0.  I selected Download Only to make sure that step was verified.  I downloaded the 213mb file in 27 minutes, averaging 45KB/sec and reaching 96 KB/sec.  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.