I got a new iPhone 3G a few weeks ago. It was working great until I updated from the 4.0.1 to the 4.0.2 software. I can't hear out of the speaker that you hear out of when you put your face up to the phone, and the proximity sensor stopped working. The weird thing is, it only does this half the time, the other half of the time it works perfectly normal. Sorry if this was worded in a confusing way.