WiFi loosing internet connectivity

Hi,
I bought my iphone from ebay last week. Brand new and factory unlocked. It was shipped to me in South Africa.
I've been using it for a couple of days now and I noticed that the wifi is very dodgy. It connects 100% to my wifi network (which has WEP64 security and is connected via pppoe to the internet).
My iPhone does see the Wifi network, and joins without any problems. It also keeps the connection to the actual WiFi network without any problems, but it seems to loose the internet connectivity. When I browse Safari on my phone I keep on getting "Not connected to the Internet". Applications that require that internet doesn't work either. It works for 1min and then all of a sudden it says "No Internet connectivity".
It's actually very concerning the number of people having issues with WiFi.
I'm running OS 3.0.1 (And I'm not willing to upgrade due to jailbreak no working on 3.1) I've also read that 3.1 does infact NOT SOLVE THE PROBLEM with WiFi.
My question is, how do I go about having my iPhone accessed and replaced. I stay in south africa so will apple replace it here in south africa with a new one, or do I need to ship it back to USA?
Thanks

I have 2 x iPhones [supplied by Apple] both have been upgraded 3.0 to 3.01 and now 3.10 without any issues. Reading the threads on this issue it would be very easy to form the view that it is a hardware issue. If that is the case then you should have the same connectivity issues with any network which may be something you might like to try in order to establish the point of failure. Initially I had a similar problem with the router which was drawn to the router manufacturers attention which was resolved with an upgrade to the routers Firmware. I run WPA2 encryption without any issues on an 802.11/n 802.11/g [compatible] router. Good luck Ant..

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