There was a lot of speculation on here about being able to do O2 contract upgrades (if eligible) in UK AppleStores. The answer is YES you can! My upgrade in the Birmingham Bullring store went very smoothly. I arrived at 07:30 to find a queue of about 20. We had free Starbucks coffee! There were probably about 50 in the queue by the time they opened. Those with Personal Shopping appointments went in first. I was allowed in the store about 8:30 for a play on the display 3G Ss, and then started the upgrade process at 9am. Apple seem to be running an O2 contract system under Windows (e.g. using VMware Fusion) on iMacs. They take a few details, check ID, print a contract, you sign it than pay for the phone. You are then handed over to a Genius who puts your old SIM into your new iPhone then activates it using iTunes. My was activated and on the network straight away and I could makes calls etc immediately. The upgrade and activation took about 20 minutes. All in all it was a very smooth, well-run operation!