And now the rest of the story

And after 90 mins of wait on hold for apple support we found that the
com.apple.iTunes.plist (iTunes settings stuff) was corrupted. We
quite iTunes, moved that file aside and restarted and now I could sync.

Some observations:

1) iPhone is useless until you get it activated which currently can
take MANY hours as AT&T wasnt up to the task
2) If you have sync issues try blowing away com.apple.iTunes.plist
3) Nested contact lists in AddressBook don't sync to iPhone. I had
created nested lists since the Razr only let me sync one list so I
used AddressBook nesting to do it. Now with iPhone you can choose
multiple lists so its not a big deal.
4) The mail stuff needs some real TLC from apple. No spam control, no
bulk operations. I set it up for my gmail account and it wants me to
re-read 400+ messages on there and there's no bulk operations. Come
on apple.
5) The touch screen works good, its going to take getting used to the
typing but its faster than I thought already.
6) My face oil makes a nasty mess of the phone. Im no pimply teenager
any more (40...) but i'm making a work of art look ugly just by using
it.

And of course there are the things i'd like to see that they skipped:
1) Instant messaging/chat - AIM/iChat/Yahoo/Gtalk
2) Music for ringtones (although i'm partial to my Quacks now)

But beyond the above my initial impression is that its an amazing
device.