One day signal is good, the next its shocking!?

Im using a replacement handset, sent out on Insurance via O2, and the singal on it is very temperamental!
It only seems to get a signal straight after it has been switched on, and then when it does it just fades away after 1 minute or so. If I try to ring it from another phone, with 1 bar of signal shown on mine, it goes straight to the answer phone...
Then yesterday, it worked abosoltely fine, sending texts, receiving calls in places I couldnt in previous months.
This afternoon though its back to its crap self! Weird.
Anybody else had similar problems?
Thanks
James

I'm not sure if it is network related, because I have been on O2 for over 6 years and been well impressed with the coverage when using a K800i. I had my iPhone sat along side another phone
All of yesterday comparing signals and this iPhone sucked in comparison.
I'm begining to think that it seems to work better after a full charge, but not sure.
Also, when plugged into iTunes I got a message asking if I wanted to update my carrier settings, which I did... Cud this be something to do with it?
Thanks for ur imput guys, I really need to get this sorted!
James

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