IPhone 3G WiFi Dropping, Signal Stength Still High, Extreme and DHCP?

I've been having problems with my iPhone 3G WiFi (I had the same with my First Gen iPhone too), where it lost the ability to connect to the Internet, although the WiFi connection was still active and showing full signal.
A reset of the Extreme and a various combination of resetting network settings / forgetting network / renewing DHCP Lease etc on the iPhone normally gets it going again, but not something you want to do every 30 minutes !
My Extreme is connected to a NetGear DG824M ADSL Wireless router, that I used before I had the Extreme (bought for a longer range and the 'n' spec so quicker wi-fi moving files around in the house, to Apple TV etc).
The NetGear's Wi-Fi is off, and the Extreme is working in Bridge Mode. I can get Internet connectivity with all devices with either the NetGear DHCP option on or off. I've tried tying DHCP addresses to the respective Mac addresses.
I've read elsewhere that the Extreme should be serving DHCP for the rid the iPhone of this issue, but cannot set this up. I must admit to being a bit confused over the basics here.
My ADSL Connection is with BT, and therefore I believe PPPoA (?) which requires a username / password.
Any help in setting this up, and indeed if this could even be the issue with the iPhone dropping much appreciated. I've searched every forum posting here on on each Mac site for months without any joy !
Thanks

If the problem appears to be isolated to only your AirPort Extreme, in other words it doesn't happen while connected to other Wi-Fi networks, a "hard reset" is justified:
To "hard reset" an AirPort Base Station: make sure it's powered up, then gently press and hold its tiny reset button. Don't apply any more force than required to feel a tactile click. Keep it depressed for five to ten seconds, long enough for its LED to flash amber rapidly. Release the reset button. Then, the LED will glow amber steadily for about a minute. Then, it will flash amber, slowly, about once every second or two, waiting for you to configure it with AirPort Utility.

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