IOS 4.2 update, no 2G Data connection, Vodafone Australia

I recently had my first iPhone 4 replaced under warranty and received the replacement on Tuesday, everything was working fine, I synced my contacts from Mobile Me etc during the day.
That evening I synced the phone with iTunes and updated the software.
The next day I noticed that 3G works fine (if anything it has improved) but the phone doesn't get ANY data reception in a 2G area, which is where I spend most of my time at work.
I've tried resetting the phone, resetting the network settings, switching aircraft mode on and off, sometimes the 2G "circle" briefly flashes on then imediately disappears again.
I called Vodafone data support and all they could tell me was that it was due to Apple.
This is a most frustrating problem as I used to use 2G data a lot, now nothing works at all, no email, no Facebook, no push notifications, nothing, visual voicemail and MMS don't even work until I go outside and pick up 3G, which drops again as soon as I go back inside.

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