IPhone Dropping WiFi

OK, I have been having this problem for months, always with the hope that the latest update would fix it, to no avail.
I have an iPhone 8GB (non-3g), running OS 3.1.3
The phone will see strong signal, and I can have it connect to Wifi access points without problem, however, after a few seconds, it drops the Wifi connection and reverts to Edge for data service. This will happen weather the data connection is being used or not.
I have the same problem on all networks. (so its not a "reset the router" problem)
I have read numerous threads here and elsewhere about similar issues, but most have been left unresolved it seems, nevertheless, I have tried the following common suggestions without success:
"Forget this Network" - then retry connection. No change.
"Reset all network settings" - no change.
"turn wifi on and off a bunch of times" - no change
"Hard restart" iphone - No change
"Restore" using itunes - No change (though this did not reset me back to fimware 1.X.X that my phone had when I got it)
Anyone have any ideas that might work? I'm sick of this phone being a constant headache.

Hi rayfound,
It may be a failure of the wifi card in your phone as you have done everything possible to rule out software.
When you restore your phone it will not downgrade beyond the last major change so you can't go back to OS 2 if your currently running OS 3.
My only suggestion would be to visit the Genius Bar at your nearest Apple Store. You can make an appointment online. They will service your phone for free if its under warranty or tell you how much it will cost to fix the issue.
Dib.

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Hey svenaerts228!
Here is an article that can help you troubleshoot this issue with your connection to data signals:
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http://support.apple.com/kb/ts4429
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