Appalling iphone support from o2 in the UK & be careful upgrading to 2.0.

Upgraded my iphone 2g to 2.0 about 3 weeks ago.
It crashed in the process. Since then, phone wouldn't accept sim card, saying that the sim wasn't compatible with my phone.
Did all the usual diagnostics with Apple and O2. They blamed each other for the problem.
Got a replacement Sim. That didn't work.
Got a loan 2g handset. That didn't work.
Got another replacement SIM. That didn't work.
Got another replacement 2g handset. That didn't work.
I have spent over 9 hours i the last 2 weeks on the phone to Apple and O2 and the problem still isn't solved.
They are both still blaming each other for the problem.
One call took 2.5 hrs, and ended up with me being transferred back to the person I started with at Apple, who had no idea what I was talking about.
It's been nearly 3 weeks of problems, and O2 would like me to wait while Apple consider what to do, so they can decide whether to escalate the problem to their 'high level complaints' department.
With O2, I have had the worst customer service of any company I have ever dealt with.
They refuse to give out direct numbers to contact tech support staff, even after having spent this long on the phone to them. So I have been forced to wait an average of 20 mins on hold for each query.
I like the iPhone, but O2 are arrogant beyond belief.

My story.
We (my wife and me) have an Iphone 3G. After really being eager for the update (especially for battery stamina) I updated both Iphones with Itunes 8 because that was required. After the update both iphones where completely dead. So I tried the restore function in Itunes. After unpacking the software progression menu, the restoring was in progress. The restoring went to appoximately 2/3 of the progression menu and that collapsed... The message was something like "could not restore unknown error -6"
After restartin over and over again trying to reboot both mac and Iphones, trying reboot with option key.. I have done really everything (at that point I knew that was useless but still kept on trying)
My sollution was the following.... I released the connection form the iphones and plugged the USB cables into a HP laptop running windows XP. Downloaded itunes 8. Then itunes mentioned the update so I ran the update. After this it was really easy to bring back the Iphones back to life (THANK YOU MICROSOFT) of course both iphones now contained the standard installation stuff... (please note that installation will take up to 30 minutes for one Iphone)
After reanimating the iphone through my windows laptop I again connected the iphones to the Imac again. At this point the itunes in Imac asked to bring backup to the iphone.
And it all worked out fine...
I HOPE THIS WORKS OUT FOR ALL OF YOU..
After the Iphone plackout I tried to call Apple, their automated message directed me to the dutch telecom provide Tmobile. They where NOT prepared. The very nice guy on the telephone said "i will transfer you to our special Iphone service dept.... 10 seconds the guy came back that the Iphone department knew about the problem and I needed to bring the Iphones in for repair. I am a paying customer for two Iphones but aparrently I am not good enough to talk to...... I solved this problem while they pay people to bring me the solution that do not even want to talk to me....

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