Dropped calls with full signal

When I am on my iPhone with a full or close to full signal, the sound cuts out for a while and then come backs a few times, and eventually drops the call. Its not every now and then...it's every call!
I have synced and restored it...and neither helped.

This does sound more like a faulty antenna than a SIM card problem to me. It may be that when the iPhone switches towers, as it does periodically, even when on full or near full signal strength, there is a time lag between disconnecting the previous tower and locking on to the new tower. This used to be a problem with old analogue mobiles that employed "hard" handoffs rather than "soft" handoffs, where the new tower is locked on to before disconnecting from the previous tower. In any event, with digital phones that still use hard handoffs, the technique has been refined to the point where the change is said to be imperceptible (does anyone know whether the iPhone employs hard or soft handoffs?).
Try replacing the handset and see if that improves matters for you.

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