I was at work. My (now-ex) shrew called and told me that the Shuttle had just blown up. I thought she meant on the pad, and asked if any of the astros were hurt (figuring that they had ridden the wire down, but maybe they hadn't made it out of the danger zone).
No TVs where I was. I had to go into the field later that day, and stopped by Henry Radio, where every TV on display was tuned to the news, and all of the other entertainment stuff was turned off. A sign in the ham radio area advised people that if they needed help, the staff was in the entertainment area.
I was buying Diesel fuel at the truck stop in Oshkosh, when I heard some trucker's CB telling people to pray for the souls of the astronauts. When I went in to pay, everyone was in front of the TV in the driver's lounge watching the pieces of Columbia fly across the sky.