Same here, thought it was my phone and the update got messed up, but restored multiple times and have the same results. In my highrise apartment (40th and 2nd Ave) I had 3 3G bars before the update, everything worked (calls, internet). Now it will say the 3G signal is 5 bars but you cannot make a call or connect to the web. Then it stays on No Service for a while, then finds 5 bars 3G but can't connect. I have to toggle it back to EDGE for everything to work. Walking outside my apartment however 3G works fine. Probably another glitch in the ridiculous saga of iphone 3G defects/software.