I can say that I am seeing something similar to what the OP is saying. I'm in GA, on an iPhone 3GS, and when I received it Friday, the toggle in "Messages" was not there at all to enable/disable MMS. Now, after I saw the OP's original post, I checked again, and it's there! I set MMS to "ON", and the camera icon now appears in the SMS application. I tried sending a test pic to myself, but it does time out and give the red !. And I've done nothing to the phone nor downloaded any carrier files. It actually hasn't been connected to any computer since being activated Friday morning. So, it looks like AT&T CAN enable this from their end of things.