Just so anyone that is searching doesn't run into what happened to me.
New apple policy says that the account holder must be present even if you are authorized. This is what I was told by the staff at the Cambridge, MA Apple Store. Apparently they don't have access to that info, and had run into problems last week.
I also called att today and the cs agent told me that they had received the memo that basically said the same thing. However, you can still activate in an ATT store. Just not the apple store because their system doesn't give them enough information to confirm identities.
I had called last week as was told I would be fine. So i waited in line for about 45 minutes this morning until i decided to ask just to be safe. In the end, I just went to the att store at the other end of the mall, ordered the phone and should have it in a week.
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