Applying the First iPhone Update

Here is how I updated our iPhone. BTW, it didn't have any problems with the "activation" I did without AT&T.

1. iPhone connected, iTunes up. Of course.
2. In the Version section, click Update.
3. iPhone will show:
   Software Update
   [Apple logo]
   [progress bar]
   
4. On iTunes:
   "Verifiying existing iPhone software..."
   (after 1 minute or so)
   "Updating iPhone firmware..."
5. Gets a little scary but paitience... Progress bar froze for like 5 minutes.
6. iPhone will show:
   "Incorrect SIM - Please connect to iTunes to reactivate iPhone."
   Click the Dismiss button.

Done!