I've had the EXACT same issues with connectivity and dropped calls as a majority of members on the board. I did three things today and I'm doing tremendously better. 1.) I complained to AT&T and spoke to a rep. After the rep told me to "take your battery out and do a hard reset" after I told him 5 times I have an iPhone, I asked for his manager. The manager apologized (amazing in itself) and did a software push to my phone. 2.) I had apple replace my initial 3G phone 3.) I got a new SIM card from AT&T since I've had the same one since my initial iPhone. I don't know which of the above did it but I'm moving tremendously better today. Better reception, I haven't dropped a call since I did this, and I'm not getting those 302 server errors. My guess is that it was the push AT&T did. I'm use to Verizon where they have the *228 option to update your phone. Apparently (at least according to the manager) when you pull the battery out of a phone and put it back in, it does a search for new "software". If you can't pull out the battery for the iPhone you can't update. I'd suggest calling AT&T and asking for the "data push".