My 3g updated with 4.0 went smoothly and works perfectly.

With all the problems out there related to latest firmware updates I hope that most of us went through it without a hitch. Just follow some simple rules as usual with updates. Don't skip steps. Back up first. Get latest Itunes update. Sync again as usual. Then download 4.0 and do the update for your phone.
Note: If using windows, be sure to have all the latest windows updates for your system.
Treat your Iphone like it's not a phone. It's a hand held computer that can also make and receive phone calls.

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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