There's no OS to speak of, no optical drive, just 4GB of flash storage and 256MB of RAM, and you're limited to a 400MHz Freescale 5121E processor with integrated graphics under the hood. But the CherryPal desktop PC -- just revealed with a $249 price tag -- is definitely worth making a fuss over. About the size of a plastic paperback sporting a pair of USB ports and VGA-out, the mini PC plugs directly into the CherryPal Cloud via 802.11b/g WiFi or 10/100 Ethernet for 50GB of free Internet storage, automatic system updates, and access to a number of webified apps (which also reside locally) including iTunes, OpenOffice, and a CherryPal-branded instant messenger and media client (though we figured iTunes would have taken care of the media playback). Of course, the lack of traditional specifications results in just a fraction of the power consumption used by that electron gobbler sitting on your desk. Not bad if your PC's primary function is to playback audio, surf the web, and occasionally edit an Office document. Oh, and that name, CherryPal? It originates from an early tester who declared it, "sweeter than an Apple." We'll see when the first CherryPal desktop ships at the end of this month -- order today.

[Via Crave]

In a repeat of last year's problems, it looks like the insane demand for the iPhone 3G has taken its toll on Apple's iTunes activation servers -- that's a picture of iTunes locking up in the Chicago AT&T flagship earlier this morning. We're hearing that the servers are now definitely down after being intermittently active for the past few hours, and that customers are either being turned away or sent home from both Apple and AT&T stores to activate at home using iTunes. That's especially interesting since it suggests that AT&T was insisting on in-store activation to thwart unlockers, but for right now the real news is that lots of eager iPhone 3G buyers are stuck with two useless phones, since upgrading from a first-gen unit disables the SIM. Ouch. We'll keep you updated.

Update: Apple has confirmed to us that activation is down, and that customers are being asked to take the phone home and activate via iTunes later. We're not sure what good that'll do, since the servers are down no matter where you are, but Apple says it's "working on a solution." In the meantime, it looks like the new SIM works in first-gen units, so at least upgraders aren't totally phone-deprived. Oh, and remember that updating a first-gen iPhone to 2.0 requires hitting the server as well, so if you haven't taken the plunge we'd say hold off until this all gets sorted.

Update 2: In related news, those updating their first-gen iPhone to 2.0 are also getting caught in the activation shuffle, leaving some with bricked iPhones. In our test case, the activation servers came back up after about 45 minutes just long enough to get 2.0 running on our first-gen iPhone, but not all have been so lucky. Is your first-gen iPhone stuck in activation limbo from the update? Let us know.

iTunes 7.7 is now available over software update. According to the release notes:

"Use iTunes 7.7 to sync music, video, and more with iPhone 3G, and download applications from the iTunes Store exclusively designed for iPhone and iPod touch with software version 2.0 or later. Also use the new Remote application for iPhone or iPod touch to control iTunes playback from anywhere in your home - a free download from the App Store."

Now, if only the App Store was available for our free, Remote control download... tap tap tap.

Update: Screenshot of iTunes 7.7 Remote control configuration screen (warning: it's not much) added after the break.

Update 2: Mac and PC direct downloads now available.

Update 3: According to MacRumors, 7.7 also appears to add Nike+ integration for the iPhone -- a move long rumored and now seemingly confirmed.

[Thanks, Edward G., Calvin P. and everyone who sent this in]

For the smattering of Canadians wealthy enough to pick up an iPhone 3G from Rogers Wireless without worrying over the lack of an unlimited data plan, we've stumbled across what appears to be internal verbiage detailing the in-store activation process. Quite frankly, there doesn't seem to be any real surprises here, but it is somewhat interesting that retail locations will be required to download and use a special version of iTunes with an "Activation Only Mode," which will enable employees to unbrick the mobiles before customers leave. In any case, feel free to hit the read link if you're anxious to know exactly what the sure-to-be-hair-raising experience will be like come July 11th.

[Via GearDiary, thanks to everyone who sent this in]

Who would've thought that rumored iControl app would not only turn out to be real, but survive the inevitable internal politics, delays, and feature cutbacks to make it all the way through to a summer release? Sure enough, iTunes 7.7 has been pushed out to developers in the past several hours, and the installer encourages iPhone and iPod touch owners to "use the new Remote application for iPhone or iPod touch to control iTunes playback from anywhere in your home -- a free download from the App Store." No further details are given -- and it's not clear whether the "iControl" name seen earlier has been scrapped altogether -- but we can guess that it'll use WiFi to hook up with your mainframe, which really makes the idea of an AirPort Express appealing all over again.

On another note, Apple has released Beta 8 of the iPhone SDK and is using the occasion to kick off acceptances of applications to the real, live App Store in preparation for its July 11 launch. It appears that Beta 8 is actually required to complete the process, so don't go jumping the gun now -- goodness knows the rest of the iPhone-toting world doesn't want your half-baked apps in a couple weeks, you shady developer, you.

Read - iPhone / iTunes Remote app
Read - Applications to App Store now being accepted

As the dust settles on the iPhone 3G / WWDC blowout, we've sifted through the debris and discovered a few eyebrow-raising tidbits you might be interested to know. The first of which is news that the next firmware update (2.0) could be headed to devices as early as June 27th, at least according to Apple's Australian iPod touch features page, which touts the arrival of the app store later this month. Meanwhile, Apple's cash cow won't get those OTA iTunes music downloads that were being heavily speculated on in May. Word on the street is that record labels are -- wait for it -- still holding out for those upped premiums, or that AT&T wants a cut of the action, which Apple is reluctant to hand over. Of course, AT&T wanting their share of that revenue makes good sense when you realize that the telco is taking a major hit on the sale of these devices -- a hit which will stall profits until 2010. Perhaps that explains the new rules about activation; according to a report from Reuters, the company will penalize customers who buy a phone but don't activate within 30 days, which falls in line with their aggressive new push to lock users into a contract... which looks exactly like the old cellphone business model. On a lighter note, iLounge has some real-world spy shots of the device's shell, which they claim smudges like it's going out of style, though it may be joined by a Product (RED) variation later this year. Enjoy!

Update: Apparently Apple reps have confirmed that there won't be any early firmware updates for the masses, and that they're still on schedule for July 11th. The Australian site has since updated its info -- so put the champagne back on ice.

[Thanks, Dan and Danny]

Read - Australian iPod touch features page
Read - No Over-The-Air 3G Music Downloads For New iPhone; Labels Holding Out For Higher Price Per Track?
Read - iPhone to cut into AT&T earnings until 2010
Read - Real World Photos: Inside + Outside iPhone 3G's New Shell

Like many, you were probably planning on hanging back, sipping on Bacardi 151, and waiting for your new iPhone 3G to arrive in the mail following a timely pre-order. Unfortunately for your foot-kicked-onto-desk plans, Apple and AT&T have something else in mind. Word on the street is that you will not be able to purchase and / or activate a new device via any other method than in-store, thus doing a full 180 on the way the dream team was doing business last time around. So not only has Apple's revenue sharing gone into that good night, but it appears the innovative DIY activation that was such a big deal this time last year is shuffling off as well. So what gives guys? And more importantly, why are you making us leave the house? Hear what AT&T reps had to say about it after the break.

Apple just announced that iTunes UK will finally make films available to British punters. Studios include 20th Century Fox, The Walt Disney Studios, Paramount Pictures, Warner Bros. Entertainment, Metro-Goldwyn-Mayer Studios Inc. (MGM), Sony Pictures Television International and Lionsgate UK. At kickoff, about 700 films will be available to purchase or rent. Films cost £6.99 for purchased library titles and £10.99 for new releases. Rentals start at £2.49 for library titles and £3.49 for new releases -- "HD" titles for £4.49 without with an Apple TV prerequisite, apparently.

Update: Nope, after digging around the store it's clear that an Apple TV is still required for HD rentals. Picture proof after the break.

Update 2: The Canadian iTunes store is sporting films now as well. Come on Apple, Canada's not worthy of a press release? What's that aboot?

Update 3: Canadian press release now oot -- 1,200 films (not 700 in UK) now available for rent or purchase.

[Thanks, Nate and Zayn K.]

According to a churning rumor-mill, Apple desperately wants to make over-the-air downloads of iTunes content a reality on the 3G iPhone. Apparently, a record label executive "familiar with the discussions" states that the Cupertino gang is hoping for a "big launch in June" which includes OTA music downloads, ringtone sales, and ringback tones (the substitute music you hear instead of a ring when calling someone). There's only one problem: the labels want a higher premium for those services than a typical MP3 download. Of course, Apple's iTunes pricing has been a point of contention for some time, though its recent rule-bending for HBO could lead to upped charges for the new services. Something tells us Apple has the tenacity and bullheadedness to make this work -- let's just hope they can temper the labels' greed with the end user's economic realities.

[Via AppleInsider]

Everyone knows that nobody buys a BlackBerry for its musical prowess, right? Au contraire, dearest email addict. RIM is currently working up a new application for BlackBerry smartphones that will "transfer your desktop iTunes music files" to your BB for those rare moments when you can actually kick back and enjoy the soothing sounds of Rogue Wave. Interestingly, we're not told whether BlackBerry Media Sync is being crafted specifically for the upcoming Bold, and we're also left to wonder when it'll actually be released. Patience is a virtue -- at least that's the word heard through the grapevine.

[Via CNET]

It's official. HBO content just entered the digital halls of iTunes with variable pricing. Episodes of Rome and The Sopranos pop for $2.99 while The Wire and Sex and the City (yes the complete series) go for the iTunes "standard" pricing of $1.99. We just fired-up iTunes and confirmed it just like the rumor predicted. With Apple backing down from its strict, flat-rate pricing policy, don't be surprised to see additional content from previously iTunes-shy providers arriving in succession.

Update: Deadwood ($2.99) and Flight of the Conchords ($1.99) are also available with "much more" apparently in the works.

Update 2: Apple just released the PR.

[Thanks, Turki]

It looks like Apple might finally ready to give up its demands for straight up and down $1.99 TV show pricing on iTunes. If you'll remember, Apple and NBC had quite the squabble over price flexibility and margins last year, and some other show providers have held off providing content until they can get a more favorable deal from Apple. It seems one of those content holders was HBO, with word on the street that Apple is finally going to bow to desires for flexible pricing, and has signed up HBO to kick things off. Apple has also in recent months added NBC Universal shows to its UK store with variable pricing, which might be a sign that a return to the US store isn't far off.

[Via Silicon Valley Insider]

Hollywood Reporter says that Apple is expected to announce today an across-the-board deal to sell new release films at its iTunes Store. The deal is said to allow Apple to offer a "broad slate of top-shelf films" day-and-date with home video releases -- a long time sticking point with brick-and-mortar interests who want to keep their early-release edge on digital downloads. The deal includes Fox, Walt Disney Studios, Warner Bros., Paramount, Universal, Sony Pictures, Lionsgate, New Line and more -- all of which are currently inked to deliver rentals through iTunes. MGM is not part of the deal. That puts Apple in direct competition with Wal-Mart's DVD empire after having pushed Wal-Mart from the top spot in music sales for the first two months of the year.

Update: It's official. New releases will cost $15 and catalog titles will cost $10 -- US only for now. Full press release after the break.