Just updated my iPhone to the latest firmware and got this message on iTunes. I think what might be going on is that I put my iPhone in Airplane Mode so it wouldn’t interrupt any backing-up or updating with a phone call. And now that it can’t communicate with AT&T it doesn’t want to reactivate since it’s impossible to turn the radio in it back on without it being activated, a Catch-22 situation.
It’s almost enough to make me break-out my Motorola v120c and activate it on Verizon Wireless.
*Update #1* Doing a Force-Restore on the iPhone forcing it to connect to iTunes. We shall see if this works and if it wipes-out all my data. It had better not after that long back-up. To force a restore: Disconnect from USB, Press Home+Power to turn-off the phone, Hold down the Home button when reconnecting to USB, choose restore from iTunes.
*Update #2* Force reset the phone, restored all the data but upon subsequent reconnection iTunes wants to restore again from a back-up. Letting it restore, I’ll check it in the morning.