No AT&T Signal at Home

I purchased my iPhone three months ago as a replacement for my Treo 650. That meant switching to AT&T after 20+ years with Verizon or its predecessors. The device is primarily for my business, but I use it also for personal email and a little web-browsing.
I also work at home, in the middle of Irvine, CA USA, a city of 180,000 people in the middle of Orange County, just south of LA, and an urban area of perhaps 2.5 million people.
AT&T has admitted I get essentially no iPhone cell service at my home. Sitting next to my kitchen window there is repeatedly "NO SERVICE." I can walk outside and down the street, and still "NO SERVICE." My complaint to the PUC here in California resulted in AT&T confirming that there is no service, and AT&T even offered to let me out of my contract. That would of course render the iPhone useless.
In my initial complaint, I asked the PUC to order AT&T to uncouple me and release the iPhone so I could sign up for a different GSM service -- say, T-Mobile. The PUC refused. The PUC also said it had no jurisdiction over my complaint about the linkage between Apple and AT&T, that I should go to the civil courts.
AT&T also lied to the PUC about my situation, claiming among other things that I had a basement in my home which caused the NO SERVICE condition. Obviously, I have no basement.
The iPhone is a safety device at my home because if there is a power outage (which there was some weeks ago), my POTS service with Cox is VOIP so I lose that service. In the episode, I literally had to drive nearly a half mile to another location to make a cell phone call.
The iPhone is basically a good machine, even "cool," but the tie-in between Apple and AT&T is a disaster. I'm not sure what to do at this point, and I may just sue in small claims court to get half or so of my monthly fee returned.
Any suggestions would be welcome.
Dave
Personal Info Removed By Host to Protect Your Privacy

Dave, I agree with you completely.
I was living smack-dab in the middle of San Francisco when I first bought my iPhone and the reception was so-so in my house. I'd have to lean out the front window sometimes, but other times it was ok. The reception bars would often fluctuate between five and one while I was standing in the same spot.
Reception only seemed to get worse as time went by. I get dropped calls and the all-too-familiar "Failed Call" message with the two beeps all day long.
I have a friend who lives in a residential neighborhood of San Francisco, who has been looking with a few of his neighbors into buying some sort of "signal booster" so they can make and receive calls from their homes. AT&T has been no help at all.
I moved to Berkeley last month, again not exactly out in the middle of nowhere, and get practically no reception in my house. Sometimes, if I'm lucky, I can make a call standing next to my bedroom window.
Contrast this with my previous provider, T-Mobile, where I had maybe two dropped calls a year. Now I have the dubious "pleasure" of paying almost twice as much for lousy reception, ignorant customer service and I'm locked into a two-year contract. Paying the extra money would be worth the convenience of the iPhone if the service was halfway decent.
I don't have a land line and have no idea what I'd do if there was an emergency.

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