I restored the entire device, no data whatsoever... went to settings --> general and it crashed and takes me to the main screen.
cant tether, use bluetooth, add a password ....
Talked with apple... case unresolved
also experimenting with the new OS, i've also noticed that the Carrier Update constantly asks for an update whenever connected to iTunes and .. the GPS doesnt work very well at all
UPDATE: After talking with the senior advisor, they are giving me a Brand New iPhone 3G, in hopes that i can upgrade to a iPhone 4