Activating original Iphone.

The Iphone went crazy on Friday, Saturday, Sunday.  Everytime you touched it - it would hop around all of your contacts, sometimes call a contact or activate Yahoo or Google on Safari.   Finally decided that I needed to refresh the software.  After doing that - the phone needs to re-activate.  But I am being told by the Apple Store that Apple at present cannot re-activate original Iphones.   They are working on it?  It is almost Thursday - how much longer do I have to wait??
Any ideas or people to call?   AT&T was no help. 

It does it on it's own if you are on an authorized carrier.

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