ok i've read a bit that o2 are doing in-store activation therefore we cannot buy a 'contract' iphone like we used to and unlock it. However I came across this on the carphonewarehouse website.

Activation of the device requires the latest version of iTunes, a broadband connection and a minimum level of PC or Mac software. Apple, the Apple logo, iPod, iTunes and Mac are trademarks of Apple Inc., registered in the US and other countries. IPhone and Multi-Touch are trademarks of Apple Inc.

Do you think this means you activate the device at home? like before....I have searched the forum but this doesnt seem to have been answered

I'm going to have to activate mine at home, because I'm getting it mail order.

I think when you buy instore or online, you will be signed up to a tariff at the same time and then once you get the iPhone, there is an activation done at home like with the first gen iPhones.