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iPhone OS 2.0.2 Released; Fails to Fix 3G Reception Issues; App Problems
MacFixIt — ... only "bug fixes." Unfortunately, a resolution to widespread, frustrating 3G reception issues is not among those fixes. In fact, some users have reported that the update manifests poorer 3G reception that 2.0.1, with devices now giving a "No Service" message in previously 3G-accessible locations. iPhone OS 2.0.2 can be installed by attaching your iPhone to your Mac then clicking the "Update" button. Based on current reports, however, the benefits may not outweigh the risks. Read More...

Hope you didn't plan to actually make calls on iPhone 2.0.2
Ars Technica - Infinite Loop — ... has been started at Apple's support discussions board about the issue, wherein the user ended up taking the problematic iPhone to an AT&T store for evaluation. The AT&T employee verified the issue and swapped out the SIM, which apparently worked in remedying the problem. A commenter at iPhone Atlas (scroll to the first comment by climbbike1) is also experiencing the "call failed" issue after updating, and says he can no longer use the 3G network whatsoever switching to EDGE allows him to make calls again. (Ken confirms that switching to EDGE restores his ability to make ...

IPhone 2.0.2 Kills 3G Connectivity For Some Users
Wired: Gadget Lab — ... users thought the handset's latest firmware update would wave a magic wand and make 3G problems disappear forever. Instead, for some, 3G connectivity has disappeared altogether, according to an Ars Technica report. Ars's Jacqui Cheng reports that the iPhone 2.0.2 update completely disabled Ars editor in chief Ken Fisher's iPhone 3G from making calls over the 3G network. A few other iPhone users have reported the same issue at the Apple support forum, iPhone Atlas, MacTalk, Engadget and MacRumors. I agree with Cheng that ...

Is Apple shooting in the dark to fix iPhone 3G issues?
Engadget — ... Hopes were high that 2.0.2 would decisively crush the reception woes some iPhone 3G owners have experienced since taking delivery of their cracking beauties; dropped calls, latching onto EDGE reception when 3G (also known as "the good stuff") is ...

Apple iPhone 3G 2.0.2 makes things worse apparently
Phones Review — ... to get 1-3 bars of 3g service in my house and now I can’t make a call… I have to switch off the 3G to get any bars Things are going the wrong way!” Another discussions poster says: “Yes I have about 15 Apps loaded and now only 8-10 work with the new 2.0.2 software.” The thing is fixes are supposed to fix not fail, just what do Apple think they are playing at, and they should at least make sure a new upgrade doesn’t actually make things worse! Source – iphoneatlas via mobilitysite and engadget ...