Iphone 3GS just updated with 4.0.1 and nothing works on 3G!!!

I just updated my Iphone 3GS to the new software 4.0.1 and it was working fine with my wireless service at home, but when I get out, nothing works, I tryed to open the internet, nothing, tryed to open youtube, nothing, nothing that requires internet service was working, I can only use the phone and text, I called ATT and talked to iphone support and she told me to go the setting and did bunch of stuff, turn off the 3G, delete cookies, restore setting, etc, nothing worked to get me connectec to the internet, she told me then that I have to restore the phone and download the software again, I did it last night and today, same is happening, I can not get internet connection, I am getting really frustraring with this new crapy software 4.0.1, WHAT IS GOING ON!!!!!

Many people have been having reception/connection issues after the 4.0.1 update. Just search these forums and you will see. In the update Apple in their ultimate wisdom used a new algorithm to display the way the bars are displayed on the iPhone, mainly for the new iPhone 4, but it seems to be having a drastic effect on 3G and 3GS users. They say it should have no effect on actual reception as what you see now is what it actually was the whole time but only displayed differently but many are having serious issues. My friend updated and where she used to have 1 to 2 bars in her house and had no problem making calls she now has No Service.
I myself didn't update to 4.0.1 and won't until they get this sorted out.
Not sure why your having a problem only with internet connection, but like I said search these forums and you will hopefully find an answer.
Good Luck

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