Apple Inc. had lines around the block across the U.S. Friday for its much anticipated iPhone launch, making the initial release of the product a success. At the same time, however, reports began to surface almost immediately about problems activating the phones once purchased, with many of those reports fingering issues on AT&T’s side of the equation.

At the San Francisco flagship store at Stockton and Market, the line wrapped around three sides of the (long) block an hour before release. Hundreds of people lined up at stores in Boulder, Austin, and New York, according to iPodObserver.com reporters and reader reports, with one report from the Manhattan store comparing the scene outside to New Year’s Eve celebrations. iPodObserver.com will have more detailed reports on these event over the weekend.

It remains to be seen if initial sales numbers meet Wall Street expectations, and the real question of iPhone’s success won’t be answered until much more time has passed; but, the launch event itself appears to have been quite successful across the country. The Apple Stores were packed, sales were swift, and employees and customers alike appear to have been having a good time. The same can not necessarily be said with many AT&T retail locations where supplies were apparently more limited, anecdotally speaking, and the staff less enthusiastic about the lines of customers.

On the less-than-positive side, however, are the initial reports of activation trouble for some customers. While this reporter’s activation process was seamless, easy, and fast, complaints of activation problems surfaced on Apple’s support forums, and some online media outlets have also reported problems.

iPodObserver.com readers are encouraged to post their experiences in the forums and article comments.