3G connection keeps dropping out after 4.2.1 update

Hi, I'm wondering if anyone could help me.
I have the iPhone 4, and it was working perfectly... until I upgraded to iOS 4.2.1.
Ever since then, my 3G connection keeps dropping out, and I'm just left with vodafone UK (with usually 3-4 bar signal) but no 'o', 'E' or '3G' symbol.
After about 20 minutes of no cellular data, I'd get the 'o' symbol, then 10 seconds later it would change to '3G'. But then after 5 seconds it would lose it. The cycle would continue in this way.
Strangely, when at home, the 3G would stay connected. But when I go anywhere, I lose 3G.
When I turn 3G off, I get constant 'o' connection where ever I go. It doesn't drop out.
I've tried resetting the phone, and resetting network settings.
Does anyone have any ideas?
Thanks.

I'm having a similar issue with my new iPhone 4 (w/ 4.2.1)... It continually cycles through the following sequence:
AT&T / 3G
AT&T / No Data
Searching…
Searching… 3G
AT&T / 3G
(loops…)
Here is a video of the cycling. Note the iPhone 4 is just sitting on a coffee table in my house.
http://dl.dropbox.com/u/7186070/ip4fw421searching.mov
Also worth noting, I just got the iPhone 4 and I updated it to 4.2.1 right away. Previously, I had a 3GS which did not exhibit any of this behavior in the same location in my house. Also, my girlfriend still has a 3GS and has FW 4.2.1 without these issues. I have a video of her phone in the exact same location taken just after the clip above and her phone maintains 3-bars / AT&T / 3G the entire time.
I picked up the iPhone 4 while out of state over the holiday weekend and did not observe any of these connectivity issues, in fact the 3G throughput of the iPhone 4 was significantly better (consistently got >4 Mbps down / >800 Kbps up) than what my family members were seeing with their 3GS models.
I believe it is a baseband issue introduced with the 4.2.1 update for iPhone 4, but I also strongly believe there is some tower component to this problem (ie, software revision at the tower or configuration).
Like others here, I also performed a restore to 4.2.1 through iTunes and setup my phone as "New" and I continue to see the behavior. The phone is unusable in my house unless I manually disable 3G. As a final data point, when I'm able to maintain a 3G connection long enough in my house I get the following throughput from Speedtest.net: 1863 Kbps down / 543 Kbps up.

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