I wonderful if after I update my 3GS it will help with reception issues. Ever since the first ios4 update, I haven't been able to use my phone from inside my house (in San Francisco). Before the update and with every other phone i have had over the past ten years, reception was perfect. I've been on many calls with ATT iPhone tech support with no luck. Changed sim cards. re booted, re set and so on. My friends with non iPhones talk perfectly from my house.
Oh well...
I having the same issue as you are. Apple is say to us older iPhone user to upgrade and you won't have this problem. I had perfect reception everywhere I went. Now where I used to get 4 bars, i am getting 1 or non.