Apple has officially released iPhone Software 2.0 through iTunes and its $9.99 iPhone 2.0 Software Update for the iPod touch. Due to the installation process for iPhone Software 2.0, which requires the device to be completely erased, the phone must re-activate through iTunes’ servers to be functional following the update. A number of readers are reporting that their iPhones are unable to re-activate following the installation, leaving their phones “bricked” until Apple and AT&T fix the activation problems. On a related note, iPod touch users are reporting that they are unable to download the update from iTunes due to connection problems, which are most likely connected to the larger activation issues. We advise users to hold off on attempting to download and install either update until the issues are worked out. [Image via RedEye]