I stopped by Stonestown Mall in San Francisco last night after work-thought I would see what the line was like after calling the store and being assured there were plenty in stock. I arrived at 6pm and they were lining up outside the mall and being taken into the mall in groups of 10. Reps were outside making sure everyone was iReady

They said it was about a two hour wait so I decided to wait...*four* hours later I am in the store which is packed with Apple sales reps and buyers.
I had a corporate discount on my account and Apple can't process your order with a discount on your account BUT they are able to call AT&T and have it removed... which they did after being on hold with At&t for 30 minutes. It's now 11 pm and they are processing their final sales of the evening (all orders and activations are entered on a wireless Pocket PC device ;-) and AT&T's activation server goes down... so everyone in middle of buying a phone instead gets a nice white iClaim check (sorry no black claim checks) which they are so happy to have after waiting 5 hours--NOT... which they can use to come back tomorrow and pickup their iphone. i went and had a cocktail... or two or ....
Today wasn't so bad; with a claim check, I was able to bypass the line and get my white 16 gb iphone in about an hour.
The apple clerks were really helpful but you could tell it had been a crazy day with itunes being down in the AM, AT&T customer support not being particularly helfpul or informed and then the AT&T server crashing at 11.... and most had been there since 6 or 7 in the morning.
the line outside today was longer than it was at 6 pm last night... and they had a lot less people working today... its going to be along day for some... but it seems like they have alotof phones....
Now to sync & play with my new iphone