IOS 4.2 and 3G signal strength

I have been having a really hard time with my 3G maintaining solid reception at home. Granted, I live in a mountainous area, but it's one of those circumstances where other phones on the same AT&T network are getting much stronger signals and I'm barely getting anything, or nothing at all. I know my phone is working though because in most other places it's fine.
I've seen and heard a bit of mumbling about this issue from a few 3G users. My question is, does anyone know if the new iOS 4.2 will address this particular problem, or will it mainly address speed and wifi connectivity? Thanks for any insight.

Let me see if I can provide you with some "useful information"...
Currently I am on iOS 4.1.
I have never used/owned an iPhone before and it is new to me, but used. Given to me by a dear friend who went to the 4. Don't know if you need to know that, but essentially, it is not under warranty.
I have done all the troubleshooting steps you listed, I have also gone to the Genius Bar, and I replaced the SIM today. The thing is, the phone worked fine at the Genius Bar, and I'm not sure I did all the troubleshooting correctly.
I have never hacked or jailbroken the phone. I doubt that the previous owner had either, she is an older lady, takes really good care of her stuff, would most likely never go through the effort of hacking or jailbreak.
Right now I have 2 bars and wifi. When I just tried to make a call, it connected then failed. I'm sitting in the exact same spot as I was when I posted earlier. I am baffled and bummed because I was given an iPhone that I let myself get pretty psyched about.
There's my story...

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    ~~~~~~~~~~~~~~~
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