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Is anyone else's update failing with "The iPhone activation server is temporarily unavailable."?

Yes, everyone's is: http://search.twitter.com/search?q=iphone+activation+server.

If you start the update, and then while it is extracting, disconnect your Internet connection, the update process doesn't try to contact the activation server.

http://twitter.com/JeremyCurry/statuses/2211487905

(I'm confirming that this works)

Yes. I am too.

Fourth time rebooting, finally got activated.

No need for rebooting, just keep trying.

Reply on news.ycombinator.com