Can someone explain purchasing, activating and signing up for iPhone.

Hi, iPhone hits UK in November and I'd like to be prepared. Can someone explain to me how it's going to work. In the USA where do you buy the phone - the Apple store, and what do you do just walk in a buy the actual phone as if it were an iPod? And then how does activation work? What is it, just registering the iPhone with Apple or signing up with the network provider? What stops you from just buying the phone and putting another AT&T or O2 sim in and not signing up for one of the contracts?

Presuming that it will look pretty much the same as it did for US customers, it will be something like this..
You walk into your local Apple store and purchase an iPhone, or you can order one through the UK online Apple store (or, presumably, O2 will sell them in their local shops).
You connect the iPhone to any computer which meets the minumum system requirements. It will recognize a new, unactivated iPhone and take you through the activation, which includes:
1. Entering your name, address, and payment info
2. Create an iTunes Music Store account if you do not already have one
3. Select which type of call plan you want (how many call minutes, how many text messages, etc)
4. Specifying whether you want a new number assigned or want to port your number from another provider (assuming this can be done in the UK)
You will then wait while the activation is completed, which can take several minutes. Once your phone is activated you will be able to make calls, send text messages, and use all the other functions of the iPhone, including syncing your contacts, calendars, and music to it. If you are porting a number from another service, once the port is complete you will be able to receive calls. If you are being assigned a new phone number, you will be able to receive calls right away.

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