NEW YORK — Apple's iTunes store, required for activating the new iPhone 3G is failing, causing massive chaos from coast to coast. Even Apple employees are — when they don't realize a reporter is in earshot — acknowledging this. "I can't believe there's just so much stuff going wrong," says one employee at the Fifth Avenue Apple Store as he takes his lunch break sitting next to me. "It's not very Apple-like. It's shitty. It just shouldn't happen." His friend agrees: "I called my dad and his phone still doesn't work."

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