IMessage doesn't function properly after iOS 8 update

Looked everywhere for somebody with a similar problem but only came to find issues with group messaging, so here is my issue:
I have an iPhone 5C, 16GB with the brand new iOS 8 update.
Before iOS 8, I was able to use all the features of my phone to their full potential, including iMessage.
After about 2 days of having iOS 8, an issue presented itself, I couldn't iMessage only a handful of my friends.
Oddly enough, my iMessage has been acting slow, but still functioning for everyone else while the handful of friends I mentioned before cannot receive or message me using iMessage.
To clarify what happens:
When I click on my Messages app on my iPhone I use the above top-right plus sign to create a new conversation.
When I begin to type in their contact, I notice their name is gray. If this isn't an issue already, when I click on their name to create a new conversation, despite it being gray, it shows green instead of the official iMessage blue, which is the only way I can contact them.
I'd also like to point out that it does not matter whether I am connected to WiFi or using my AT&T Cellular data, iMessage just fails to function properly.
If it helps, the two people I have noticed this issue with have iPhone 4's running the latest iOS 7 firmware. I have been able to message another friend with an iPhone 4, which is a reason I think their phones aren't the issue.
Thanks!

I've had lots of problems with sending some messages as text messages and then other times as iMessages even though I have data and am signed into iCloud and am sending to another iPhone. Group messages are definitely problems with everyone having iPhones. It seems like it usually involves someone who hasn't updated to iOS8 yet. But it doesn't always mess up. It seems random for me and my friends and family who are having these same issues.

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