1st Gen to 2.0 issue

I have had an iPhone for just under 1 year and it has worked great. I went from 1.1.3 to 1.1.4 when it was released with no issues. About 1-2 months ago it started locking up on me with out warning. It will work for 2-3 days and then just lock after a phone call ends or I will take it out to use it and I have the spinning circle or its just off and cannot be turned on. I have powered it off and then try to turn it on in the morning and nothing but the Apple logo with a spinning circle. I have to hold the power and home button till it shuts off. Then its a game of chance if it will actually boot back or sit at the Apple logo. After a few tries it will come up to where its useable, but for how long is sparatic. Typically I have to restore it.
So I was reading up and found that 2.0 pretty much wipes everything and lays down all new (I cannot confirm that but it seems to be true from all the things I have been reading elsewhere) Being a 12 year Cisco/Microsoft Engineer, I figured lets see if it is software and not hardware since I do not want to disect this thing and void a warranty. So I did the upgrade. Worked great. And it had worked great for about 2 weeks. I installed a few free apps, in the beginning and was pleased. Now in the past day or so (No new apps installed just before hand), I am back to where I was. The lock ups, the need to hard cycle it, etc. Again, it will work for a few days and then suddenly act up. Then after a bunch of cycles, perhaps a restore, its fine for average use. I have even downgraded my iTunes and gone back to 1.1.4 only to still have the problem and then come back to 2.0 again.
My time is limited to take it to a store for a tech to look at, which I intend to do at some point here cause its pointless to need to worry when I am on call if my phone is even available. I need something reliable. Also where I live, the closest "Apple store" to see an Apple Genius is about 1.5 hours away.
and seems hardware. I hate asking for help but sometimes you got to ask the experts, so I am here. Any advice or is there anything else that I may be able to do or is it a case for a service visit?
Thank you for your time
Regards.

If it's just under a year since you bought the phone, I'd take the time to have it looked at. at first it sounds like a software issue but having it return after update, seems to indicate something a little deeper. If it's under warrantee, take it to be checked out.

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