In Australia, where traditionally the launches happen first due to time difference, the Apple Stores in Sydney witnessed long lines of people waiting, while in the US people have been sitting overnight at some places, sometimes braving rain and the presence of Steve Wozniak.
Yes, Woz was first in line at the Apple Store in Los Gatos, California, attracting new people in the line who just wanted to hang out with him and take some pictures. Apple sold a million phones during the first 24 hours, and the carriers exhausted their initial batch of preorders.
On the software side of things, the upgrade to iOS 5 and registering with iCloud didn't go entirely smooth, with Apple servers getting slammed and sometimes crawling to a stop, long-owned Apple IDs unable to grant you access, and the email system shutting down. It's explicable for a new launch when millions of people are trying to get through, but unnerving for those who want to be the first to download and try the new stuff.