Nokia N8: Possible Power Saving Mode Bug

Dear All, 
For the past week, I've change the way I use my Nokia N8. I decided to set it up in power saving mode during the evening. There is no point for it to be on 3.5G if nobody is using it. Unfortunately, I seem to have hit a problem. At the moment, my N8 is using a pay as you go sim card from O2 and this card is in the phone 24/7. 
When I activate power saving mode, the phone re-registers with the network and the maximum speed it will have will be EDGE. In the morning, when I take my phone I disable power saving mode and the phone re-registers again with the network. 
Having said that, on multiple ocassions, my phone showed some worrying symptoms. For example, a few das ago, when I disabled power saving mode, the phone did not show the 3.5G icon and I could not make any phone calls. The coverage was up and down. You might say that, it did not show 3.5G because you had no 3.5G you idiot. That is not true, where I live, there is 3.5G everywhere.
I was shocked that I could not make any phone calls. After a few reboots and taking SIM card out, I managed to get the phone in working order. 
Today, the same thing happened. I managed to fix it just a few moments ago. It seems that the power saving mode option has an implementation problem or O2 does not like the way the N8 registers to the network when you enable and disable the said feature.  Has anyone encountered this???

@m80116, this may well be a solution, but could be problematic if in a weak reception area where only Edge is available ? You could lose data connection completely ! I tend to use Dual mode, and generally don't have an issue, but certainly for anyone living and working in a very strong 3 or 3.5G area it may work very well, wish I had the luxury of being able to use 3G Only 
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