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I have had my iPhone hang up sometimes. I just plugged it in and did a restore. This way there is a chance it can still sync whats on the phone before it restores.
 
I have reset my network settings a few times and never had any problems. Just because it happens once for one person does not constitute a bug or an issue with the phone. These phones are running software and software can hang or act up for no reason. Just because it happened once means nothing.

A simple reset should get you back to working. Even if it wipes out the phone.... it is getting everything from your computer anyway so you haven't lost anything. You may lose some notes, but it is not that bad.
 
Actually this happened to me twice, in fact, it happened to me this morning. I was going to check my email and i got the message, could not connect to EDGE. Well i gave it a few minutes and nothing, restarted and then it came on. Last time this happened to me turning it off and then on did nothing, but it did something this time, or just luck. Thats ashame what happened to you. I would freak out if that happned to me.
 
be careful, the "Reset Network Settings" button is lethal and can make you loose data if you haven't synced recently. I

Please ignore this over-reaction to the "reset network settings" button. If it was as bad as you said it is, they wouldn't have put the function on the phone! I've used this button a couple of times (its recomended to use it by O2 if you are having problems with Visual Voicemail) and rather than being "lethal" to the iPhone, it's always fixed the issue I've been having.

Clearly its a problem with your individual phone, and if it continues, you should take it into an Apple Store, for repair/replacement under your warranty.
 
For what it's worth, when I first got my phone I did the Reset Network Settings thing many times without issue. Granted, that wasn't on 1.1.2 - YMMV. Perhaps there's a legit bug in there now. Who knows? :confused:

Regarding not getting to EDGE - sometimes my iPhone, and even my Nokia phone before it, would stop communicating with the cell network altogether. Calls wouldn't work, neither would data. A power-cycle always fixed it. My theory is that after several weeks of being turned on, if something's changed at the service end of things, the phone isn't able to continue with its connection, and the only solution is to establish a new one from scratch. Or perhaps there's an overflow bug somewhere after a certain amount of time/data. Dunno.
 
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