At my desk at Tinker Air Force Base working out a deployment schedule, just thinking about going to lunch, when someone came in and said the Challenger blew up. Met up with three other lieutenants and we went to the officers club for lunch where they had a TV to watch the video.
Ok, that reminds me of another launch failure, not nearly as gruesome ("only" a satellite), off to the Military Stories thread... Edited to Add: I just realized that this launch failure also on 17 January (i.e. today's date). In 1997.
At that time I was leased to Foodliner, I was pulling a bulk tanker load of Urea pellets that I had picked up in south Georgia and was taking to New Jersey. I was probably in northern Virginia, on I 95 when it actually happened, heard about it on the radio as I was going around DC
On top of a factory. Working on process refrigeration system. Pager went off. Called the shop. Dispatcher said my wife needed me to call. She told me what had happened. Terrible day. Terrible week.
11:39 am EST 28 Jan 1986- Just sat down in a bar in Connersville, IN to partake of an early lunch. Watched the launch and disaster on live TV. Will never forget that image.
I was in 5th grade? Did not see it happen live. Our class heard about it and our teacher turned on the TV about 10 minutes after it happened.
On a side note, I was just at Kennedy Space Center and they have the Atlantis on display. I had forgotten how small the "living " area was in the shuttle. Made for a cozy trip in space.