E71 signal hampered by holding the phone??????

I have an E71 on O2, and the signal is massively affected by whether I am holding the phone or not!!!!
There is only one part of the house I can get 3G (close against my office window), and the rest of the house, especially downstairs I get a 1-3 bar GSM.
But, to make things worse... If I hold my phone, the signal drops significantly, and quite often I lose the network completely.
I simply hold the phone just like everyone does while texting, it is not as if I am wearing lead gloves and smothering it!!!
When I am watching TV, I have to have the phone about 2 foot away, and it will sit there quite happily on 3-bar GSM. But, if I put my hand near the phone, the signal drops - it is like performing some uri gellar trick or something. If I pick it up to text, I LOSE the network completely, and I click SEND, put the phone down, wait for a minute or so to get the network back, then prod the buttons from a distance and select OUTBOX > SEND, cos the text has failed to go....
**bleep** is going on???
anyone else have this problem?

Is your router an older one? Have you restarted your router( turned off for a minute then back on)?

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