IPhone 2.x update makes Wi-Fi useless...

iPod Touch 1.1.4 - Wi-Fi couldn't be better.
iPhone 2.x - Just shoot me.
I recently purchased an iPhone 2G on eBay, and I was pounding my head against the wall trying to figure out why the wi-fi connected and reverted to EDGE or just didn't connect or even find my wireless access point. I manipulated EVERY possible setting that I could on my Linksys WRT54G router, (even updating the firmware), but the wi-fi on my iPhone would not work.
I realize that many others have been complaining about this, but I just wanted to get my personal situation out there.

Tried on Airport Extreme and Time Capsule both using separate 2.4 & 5Ghz SSIDs. I carried a 4G HotSpot (http://www.clear.com/devices/details/id/devvoyagerle/name/CLEAR-Spot-Voyager-Red -Limited-Edition) which sits next to my Iphone and signal is 1-3 bars most of the time.
It is well appreciated to Apple Devs for fixing the Exchange Calendar issue with the new released but breaking needs such as Wifi and Bluetooth is not acceptable , and the fact that you cannot roll back to previous fw simply s***s.
Please apple fix these issues asap.

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