IOS 5 ACTIVATION AND SIM ISSUES

Good morning all from England!
Im on O2 (UK) and last night upgraded my iPhone from 4.3.3 to 5.0. The update went smoothly until it came to activating the phone.
All of the activation steps seemed to go smoothly, Language select, country select, location services, WiFi...then it switched to the "your iphone is being activated...this may take up to three minutes to complete"
All through this, the signal area was static on Searching... then eventually went to no service. iTunes also popped up at this point saying that there was no SIM card installed. Then i am greeted with the "unable to activate iPhone" and states that the activation server is temporarily unavailable. and asks to try again. I have done this countless times but im now under the impression that the issue of no signal is causing the issue.
From reading other posts on the interweb, there is speak of baseband upgrade issues where signals are no longer being registered.
I have tried my O2 sim in another phone and works fine, so i know it is not the sim.
Apple, are you aware of this issue? If so, how quickly do you plan to fix it.
Otherwise, has anyone else out there experienced the same issues as me? And has anyone found a fix for it?
I have the iPhone 3GS and i have been told its the new bootrom type - if that helps??
Any help will be appreciated.

Prior to the iOS 5 update, I could get 2.5 days out of a single charge based on my normal usage. Today I received one call and used the map to check traffic, once, and I went from 100% at 7am to ZERO by 7pm - auto shut off.
Can someone please explain to me what is running in the iOS 5 backround that is sucking this thing dry?
I have alread turned off PING, most of the location settings, and notifications to conserve battery. This is INSANE. I don't need trouble shooting on the device. 24 hours ago, with iOS 4.3.5 none of this was happening. The only change between now and then, is the installation of iOS 5.
Any other suggestions out there?
Maybe I should shut the phone off entirely until I actually need it - that should save the charge.
Does anyone at APPLE monitor these blogs? This is a SERIOUS issue - and I'm not the only one. There is dialog already bubbling up elsewhere regarding the same issue.

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