IPhone not activated by iTunes (O2, UK)

I got an iPhone 3G yesterday. I updated iTunes then connected the phone. iTunes started the activation process then prompted me to set up MobileMe to sync with the phone. I did this. Then iTunes showed the iPhone in the sidebar and synced it. At no point did I get the activation prompts to connect the phone to the O2 network. I have tried restoring the phone and setting up as a new phone, but it still doesn't activate. I have uninstalled and reinstalled iTunes (ver 8.0.1). No joy. I've tried it on a different mac - nada. I have taken the sim card out and put it back in again. Bubkis. All I get is the no service message. O2 say it is Apple's problem and I will call tech support tomorrow, but meanwhile, has anyone else had the same problem? Or, better yet, a solution?

Fault was with O2

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    Message was edited by: Cassiux
    Message was edited by: Cassiux

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