I thought you returned the phone because of a color issue on your screen. You had said that although the signal strength goes down depending on how you held the phone, you were going to keep it. Im just trying to gage how bad this phone is.
Aggie - it honestly pained me to do this - but I had to return 2 phones.
The first had issues - bad front AND back camera + the signal issue
The second had back camera imaging issues + signal issue
This third one seems OK. The iPhone 4 camera is sweet - but it has it's limitations. In low light there seems to be a reddish round haze in the middle of images unless you use the flash. In fluorescent lighting, you get a green haze (I'm sure you've seen pictures).
My first two phones - the problem wasn't just the haze - but that the white balancing was completely screwed up and even with decent normal light - I would get pictures that were very yellow.
It still has the signal issue. I have it in a case so it's not too much of an actual problem for me. Not that I think it's acceptable to HAVE to have a case to fix a design or software issue. But the problem, for me personally, doesn't detract from the overall experience so far.