Activation Error: Could not complete the iTunes... (help!)

Activation Error: "Could not complete the iTunes Store request. The store may be busy. Check your Internet connection or try again later"
Ok that is the error I get every time I set my new iPhone in the dock.
Details:
I bought the 8GB iPhone at the Kenwood Mall in Cincinnati OH, brought it home installed version 7.3 of iTunes, plugged in the dock and the iPhone, I went through the activation process and after agreeing to all the terms and licenses, the iPhone said "activated," but iTunes was still trying to connect to AT&T for something and eventually timed out. I remove the iPhone and it seems to sync and all features seem to work fine including making and receiving calls. BUT... everytime I place the iPhone in the dock, I get the above error. I click OK and every works fine. This happens everytime I place the iPhone in dock. How do I get rid of it??? Is there still something else that needs to be done on my account. BTW, my Internet is working fine, as I am typing this message via my Internet connection in IE on apple's site.
Thanks
Dell XPS Gen-2   Windows XP Pro   1GB Mem, SP2

I bought the 8GB model, only had a 45 minute wait in line at ATT store. Performed activation via iTunes over 10 hours ago with porting of old T-mobile number. Still receiving message that activation is not completed. Called ATT and after 3 transfers, 35 minute hold times and then a recorded message that "due to extremely high call volumes" we will not be able to answer your call" it then proceeds to disconnect you. Finally kept trying and talked with ATT rep. in portability and they confirmed my porting has been approved but that my account still shows iPhone not registered. They then provided 877-800-3701 for problems with iPhone activation. After speaking with this representative, he would not work with me until I provided Web Order #. I told him that I purchased the phone in person at store, so he said that I would need to contact the store to obtain this number and without this number they could not verify that I had the phone and therefore it couldn't be activated. I called the store and left message. A store rep. called me back and told me that I would need to contact that same 877 number as they could not support me. ***!! To make matters worse, my old phone is now been ported and deactivated so I am phone-less and have a iPhone sitting in the dock that is completely useless. I am very disgusted at this point and don't know what to do. I was not expecting such an awful customer experience with an Apple product. Anyone have any thoughts? I drove by the AT&T store and there is a huge line of buyers, so I am not sure what to do at this point.

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