It's actually an Apple issue
I called a At&t rep and they said it was not their servers that is causing the issue.
The way it works is that the iTune's servers controls all the activation's. From Sprint,Verizon, and At&t. So the iTune's servers are just overloaded due to the biggest demand for the iPhone yet.
The At&t rep basically patched me into Apple technical support and they confirmed this.
Now if Verizon and Sprint people are not having problems, then maybe Apple has partitioned its activation servers for each service separately.
Based on this it seems At&t would have the most activations, mostly like due to previous iPhone owners upgrading. Only 2nd rev of iPhone 4, allows other official wireless partners (Verizon). So mostly like people who have iPhone 4 for Verizon would not upgrade. So Verizon and Sprint are seeing just new subscribers.
This is not Apple's fault either. They can't predict that iPhone 4s would of done this well. Pre-mature optimization is not good as they say.
So as of now it's a matter of luck if you get activated.