Wi-Fi function available - However unable to detect any Wireless Networks

Hi All,
Yet another thread about Wi-Fi issues with the iPhone.
--- Underlying problem I am experiencing. ---
iPhone Wi-Fi function is available. When I try connecting to Wireless Networks I receive a message detecting available network and it will not progress from there. I have waited as long as 30 minutes.
--- I have tried the following suggested fixes ---
Performed test to verify Wi-Fi availability by trying to connect two iPhones to my Home Wi-Fi network at once from the same location next to Wi-Fi Router. One successfully detected Wi-Fi networks in a matter of seconds. Mine did not.
1) Reset Network settings through General --> Reset Network Settings (Tried multiple times) = No change
2) Tried disabling Wi-Fi and turning on Airplane mode then powering off the iPhone. Then power back on and then turn off airplane mode and reactivate Wi-Fi = No change.
3) Tried upgrade to OS 3.1.3 = No change
4) Tried downgrade back to 3.1.2 = No change.
5) Tried restoring over 10 times = No change.
6) Also tried to manually set Wi-Fi settings --> getting error *"could not scan wireless networks".*
7) Power Cycling Wireless Router = No Change.
--- Other Fixes I have not had a chance to try ---
1) Reading other posts many are saying that they started experiencing similar issues after a OS update to 3.1.X.
*Solution - Downgrade OS to earlier versions.*
2) Others say it is a Heat problem.
*Solution - Put it in the freezer*
*Solution - Disabling e-mail Push functionality*
3) Wireless Antenna is faulty
*Solution - Buy spare and replace*
Any feedback on the fixes I have not attempted. i have to admit that I was a little reluctent to stick my iPhone in the freezer.
Any help would be fine.
P.S. I have spoke to Apple support and they suspect that it is a hardware issue and it will cost me AUS$268 to swap the existing phone out. (I am OOW - Out of Warranty)

Hey Beta990,
Yes tried full restore to OS 3.1.2 and back to 3.1.3 which did not make a difference. I have two desktops and two laptops connected to my Wi-Fi router. I even did a test with my friends iPhone 3G 8GB and tried connecting simultaneously next to mine and his detected my home Wi-Fi in like 3 seconds and I waited for over 30 minutes and gave up.
But thanks for replying though.
I am out of warranty which really ***** and it will cost me AUS$268 to have it replaced at an Apple store. It sound very much like a hardware fault but I'm just hoping it is a software fault like some people are suggesting online for I don't really want to spend an extra AUS$268. (Tight I know...)
Any other suggestions would be greatly appreciated.
P.S. I tried the fridge fix... nah didn't work for me.
PLEASE IF YOU KNOW OF ANYTHINGS ELSE TO TRY POST ME.

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