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If Casey saw some bad experiences at the Apple Store, these poor people's experience can only be described as horrendous. Short version? Lady gets defective iPhone 3G, brings it back to Apple, Apple drops it, Apple tries to give her a new one, AT&T says sorry, nope, no activation for you! Apple ends up eating the price difference (good on Apple, boo hiss to AT&T), AT&T pockets the ill-gotten gain.

And telco's wonder why they routinely bottom out the customer satisfaction charts?

Check out the whole sad, crazy tale over at the Consumerist...

The App Store went live last week (what day exactly depends on whether you snuck in to iTunes 7.7 and snooped around on your own, or waited for the official links to surface), tying in to the iPhone 3G and 2.0 software launches. How'd it do? According to Steve Jobs:

“The App Store is a grand slam, with a staggering 10 million applications downloaded in just three days. Developers have created some extraordinary applications, and the App Store can wirelessly deliver them to every iPhone and iPod touch user instantly.”

Probably why Apple has finally started putting a dent in its backlog of developer acceptances, eh? But is all happy in App Land? Nope. Find out why after the break...

Could last Friday have been any more massive for Apple? Following on the heels of slew of preparatory updates including OS X 10.5.4 and iTunes 7.7, the transition from .Mac to Mobile Me, and -- oh, yeah -- the highly anticipated launch of the iPhone 3G hardware (see Dieter's review), Apple also dropped a little something called the 2.0 firmware. Available pre-baked in the new iPhone 3G, Apple didn't spare the love for owners of the original iPhone 2G who receive it as well as a FREE downloadable upgrade, as do owners of the iPod Touch (minus the phone, camera, SMS, and GPS functionality, and the FREE part -- $10 please).

The 2.0 firmware was first demonstrated back at the Apple iPhone SDK Roadmap event in March 2008 and immediately went through a very long, very public beta process where almost anyone could sign up and download it. In spite of the NDA (Non-Disclosure Agreement), during the 8 different betas released to developers, many new features that weren't originally demonstrated still leaked out all of the interwebs. But did all of them?

Read on to find out!

3 days. That's how long it took Apple and their carrier-partners to sell one million iPhone 3Gs. Says Apple CEO Steve Jobs:

"iPhone 3G had a stunning opening weekend. It took 74 days to sell the first one million original iPhones, so the new iPhone 3G is clearly off to a great start around the world.”

Almost 25 times faster. Server crash-induced delays not withstanding, other manufacturers -- other carriers -- must be having a sobering Monday morning. (Especially with it taking 6 months for Palm sell as many uber-cheap Centros...)

We'll be bringing your our iPhone 3G review in two parts.  Part one (the part you're reading now) is where we'll give you a full, in-depth review of the new iPhone 3G Hardware.  Here you'll find details on GPS, 3G speeds, the feel of the actual physical device, etc. If you're on the fence as to whether or not you should upgrade to the iPhone 3G, we're here to help and here's where we are, uh, helping.

Part two will focus on iPhone 2.0 software, where a lot of the real magic this week is happening and it's available on both versions of the iPhone.  That review is coming soon, for now, let's take a look at the iPhone 3G hardware with (much) more depth than we gave you in our iPhone 3G unboxing video and picture gallery

MacRumors has discovered that though you receive your MobileMe email very quickly, the "pushing" of other MobileMe services is not as fast when coming from your Mac. Apple's knowledgebase article states:

If MobileMe is Apple's "Exchange for the rest of us", then ActiveSync is Microsoft's "Exchange for the most of them". After Windows and Office, it's arguably the 3rd pillar of Microsoft's business domination. Blackberry's can (and almost de facto do) connect to them, Windows Mobiles certainly connect to them. Even the aging Palm OS Treo's have ActiveSync support. And with the 2.0 software, the iPhone does as well.

Caveat: Microsoft loves them some monopoly power and proprietary solutions (in this case, for example, using their own MAPI rather than the IMAP IDLE standard for "push" email). They may be becoming increasingly open in the face of Web-based competition, but their crown jewels are still closely guarded. So, while Outlook connects directly to Exchange for -- according to them -- the "richest experience", and Windows Mobile probably follows a close second, iPhone like other ActiveSync licensees connects via something called Outlook Web Access, the same way a web browser might.

How does this experience stack up in richness? Read on to find out!

The iPhone 3G is a data monster. With speeds of 400, 600 or more than 1400kps reported in some areas, it sucks down information faster than El Jobso does veggie smoothies. Unfortunately, not every carrier in every country provides unlimited data plans to go with Apple's next generation revolutionary internet device, or even reasonable data. And even those that do typically have a "soft cap" (e.g. 5GB) after which they either throttle down your speed, or put a black mark in your record as a problem customer and eventually give you the boot.

If you're in one of the Scandinavian countries, in Mexico, Belgium, or any other Pacific or European, Latin or African country with very expensive data, or if you just want to keep track of how much you're using and when, Apple has provided you and easy way to do it. Read on to find out how!

Not evil twin to theiPhoneBlog.com Week in Review, not an invasion by Fake Steve, This Week in Smart Phone Schadenfreude brings you all the feel-better news you need about the smartphone world outside Apple’s current media dominator. (Who knew there was such a world? We were just as surprised! Inelegant, interface challenged, keyboardy, crashy, single-touchy place — best not to linger…). Join us as we mock review the big news from last week at our sister sites. Everybody loves sibling rivalry!

In this week's edition: What? Surprised we're here? Thought we'd be taking this edition off so we could play Super Monkey Ball or Bomberman Touch, or otherwise just hide in our tasteful Cupertino estates drooling over our totally awesome new, glossy plastic backed iPhone 3Gs? We did that last time. We totally had the device before Mossberg and like 99% of the people at Apple. Totally.

We're having a bit of weekend, is all. Maybe you heard about it? MASSIVE failures. Epic. Keep reading on to find out why its all Microsoft and RIM's fault!