Yet more misery as O2 faces its worse day yet, with what should have been the highest-profile, most successful product launch yet swiftly degenerating into a shambles.

Following the Web site fiasco of earlier this week, and the sheer madness of failed activation systems prohibiting purchases at stores, now even old iPhone owners are being hit by deeply annoying locked phones as they try to install iPhone Software 2.0.

Whether you are trying to activate an iPhone 3G, or simply attempting to upgrade your existing model after waiting for months for the iPhone update software goodness (and how many of you have already purchased iPhone apps you'd hoped to play with today?) O2's big spell of the day is like one big dose of fail after another.

What is happening is that people's existing iPhone's are being "bricked" (made as useless a brick) as users attempt to install the software update. This is because part of the updating process demands iTunes activate the phone.

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