Problems with iPhone phone side

If this subject is in here already, I missed it in my search.
I've had my iPhone since Nov of 2007 and haven't had any problems with the phone side of it, until now. I've updated to 3.0.1, if I'm able to make/receive a call it's of very poor quality and usualy so bad I can't understand the person on the other end. If I haven't manually disconnected in frustration the phone will drop the call anyway.
The nearest Apple store is 3 hours away but from what I've been reading in here, the "Experts" don't know anything about v1.0 iPhones anyway so what would be the point of going. I have no need to upgrade to a 3G because I won't even use it for half of whats capable of. Heck, the v1.0 is more handheld than I need but up until now it has been the best phone I've ever had.
Is this an issue of the hardware being too old to play nice with the newer software or is this an ATT issue of using EDGE on a 3G network?

There is no issue with the older iPhones and the new OS (I have older original iPhone) running the latest OS (as so some of my friends, all with no issue).
Also, you are not using Edge on a 3G network, you are using Edge on Edge (they are different, the towers that had Edge get upgraded to add 3G or new towers are put in place with 3G and no Edge, yada, it isn't like Edge is replaced by 3G, they live separate lives)

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