Hi guys... I was also having the same problem you guys have mentioned here and after researching I wanted to post the resolution as I am sure other users will have the same problem.
To be specific, if your password unlock is now working and it disabled your phone (for 1, 5, and then 15 minutes) you need to turn your phone off completely and then when you turn it back on make sure you don't hit the emergency button. I have been able to 're-create' the problem again if I turn my phone off, then when turning it back on if I first hit the 'emergency call' button on accident and then switch back my password (mine is just 1 number) will not work. As a programmer myself I would only guess that this is a major bug in the 2.2 version and the button is probably triggering the keypad to switch to a non numeric version even though its not actually switching. Anyway, I wanted to post the resolution as I really did not want to go to restore route.
Also, we have been working on some iPhone applications and have created a few great IPhone articles so please check these out and give me any comments. Basically this article describes how to
get started with creating your first iPhone application and covers the iPhone SDK, code examples (xcode), Interface Builder, and sample tip calculator application.
-Chad
www.datasprings.com