So, is it a Defect? (YouTube error)

So, is this a defect or what? Was the activation thingy a problem? So far searching on the Internet provides no solid information.

We've actually never got the YouTube application on our iPhone to work. Right after launching the YouTube application, it will say "Cannot connect to YouTube". It seems like quite a few people are having the same problem, regardless of the way they activated. But I can't find any helpful information on what is causing this problem or how to workaround this. Well, at least this is not a big deal for us...

One more thing I can't figure out is the email setup. It seems so easy, but it just won't work. Yahoo! and Gmail, tried both but having problems. Let me dig into this a little bit more later on.

Many mysteries with iPhone...
Still, it is a cool gadget. iPod feature and the photo album feature is enough to show off and impress our friends.