After standing in line for a few hours, we got our iPhone. We hurried back to the Mac|Life offices so we can show you our iPhone experience in pictures.
Note: This setup involved an existing AT&T account. Several hours later, we were able to activate the phone. We were able to activate a new account on an iPhone without delays.
Unboxing the iPhone. We have two iPhones, one from an AT&T store, and the other from an Apple Store.
You get a cool iPhone bag if you shop at the Apple Store.

You get a frumpy AT&T bag that's sealed shut before you leave the store.
Next: the iPhone box.

Front of the iPhone Box. The box measures 3.5-by-5.75-by-2.75 inches.
Side of box.
Back of box.
Next: Inside the box.

We have iPhone!
All tucked away neatly underneath the iPhone.
Inside the box: iPhone, earbuds, power adapter, dock, power cable, microfiber cloth, and documentation.
Next: iTunes account setup.

After you plug in the iPhone and fire up iTunes, you need to activate your AT&T account.

iTunes takes you step-by-step through the account activation process. In our example, we're replacing a phone on an existing AT&T account with the iPhone.
If you have an AT&T account, enter your info.

Since we already have a voice plan, we added a data plan for $20.
We then entered our iTunes account info, agreed to the iTunes terms and the AT&T service agreement. We reviewed our account information, and then iTunes said it would take a few minutes to activate our account. Then this screen popped up.
Uh-oh. That doesn't look good.
It's been two hours since we tried to activate the phone, and we haven't heard anything from AT&T. When we called AT&T tech support, we were told that there is a 24-hour activation turnaround. The tech support person asked if I had any error messages. We didn't. She sounded relieved to hear that response. Hopefully, in the morning, the account will be active. UPDATE: The several hours later, the account was activated.
From reports online, it seems that there are quite a few activation problems. Fortunately, the other iPhone we bought activated quickly. Here's our early impressions of the iPhone.
Links:
[1] http://www.maclife.com/article/iphone_letdown
[2] http://www.maclife.com/article/iphone_first_look_5_quick_observations
[3] http://www.maclife.com/article/iphone_mob_in_full_effect_at_downtown_sf_store_across_u_s
[4] http://www.maclife.com/article/waiting_for_the_iphone_editors_blog
[5] http://www.maclife.com/article/how_to_remove_the_iphone_sim_card
[6] http://www.apple.com/iphone/