This is exactly what IOS4 did to my 3G iPhone, no exaggeration.
I called Apple again today to try and resolve this problem. I was on hold for 13 minutes. “Ryan” came on and the call quality immediately went to crap. The call failed after a few seconds. I’ll call back later after my phone rage has subsided.
It is rage because I got this phone because it “just works”. But last week Steve Jobs broke my phone and the best answer I’ve gotten so far is “Well, it was an optional update so we won’t support it.” (yes, exact words). Me along with a million other people got your fucking^W update. I paid to live in a walled garden and now the gardeners are telling me in no unambiguous terms that it is their right to burn down the garden and make me buy another one. The evil Droid phone is starting to look pretty good.