Mine updated fine, and activated fine. I now have 2.0 on the phone, and the appstore icon etc.
However, none of my contacts synced at all. Now, when I click on the iphone icon to go to sync them, it jus says "accessing itunes store" at the top and "iPhone" in the middle.
I've ejected and reconnected many times.
Why does it need to access the itunes store to show me my iphone? thats new from the last version of itunes isnt it?
For information, I'm in the UK and therefore on o2. I suspect they are involved; such a screwup reeks of o2.