How to upgrade iPhone OS to 3.0 if activation fails with error

Apples iPhone activation servers are hit today due to the load, but you can still install the update with a trick (unless you want to be patient and safe. UPDATE! Seeing reports that they are returning to normalcy now)

If you are impatient, here is how to get it done quick:

1. Make your phone download the software without installing (option in the dialog box). Make sure your phone has about 0,5 to 1Gb free space if possible.
2. Start the update, but while the software is extracted, DISCONNECT from the internet (turn off airport, remove network cable, whatever method you need)
3. Watch installation run happily. This will take a while.
4. Post installation and reboot, the phone may complain its not activated and that the SIM card is not valid. Follow instructions on screen to unlock and enter your PIN code. Then disconnect and reconnect the phone. After a bit more thinking, it should activate and all is well.