Will not call or receive calls with full signal!

This is my second iPhone 3G (I got this one a month ago) and I am unable to make or receive calls. If I dial a number, the other person's phone rings once, then my iPhone says "Call Failed." Also, when receive, I touch Answer and the iPhone freezes. The signal bars and the internet "E" disappear when calling too. Texting (SMS) and the App Store work perfectly. I just tried to enter the serial number to connect with an Apple expert and "We're sorry, but that is not a valid serial number. Please try again." appeared. Is there anything I can do besides sending it in to fix this?

Hi,
Try restarting the iPhone by holding the Sleep/Wake button until the red slider appears> then slide to turn off> and turn the iPhone back on by pressing the Sleep/Wake again, as described on page 34 of the iPhone User Guide.
http://manuals.info.apple.com/en/iPhoneUserGuide.pdf
If the issue persists, try the general tips in this article: http://support.apple.com/kb/HT1737
-Jason

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The phone on the iphone is not the best. I live in Dallas and when the phone is on 3g it really is unusable. Just for grins I started a call log for a day. In my very unscientific experiment I dropped (or couldn't hear the person and had to call back) 76.6% of my calls when I 3g for the day. In my opinion, Apple or no Apple, this is unacceptable for any cell phone. I tried calling ATT to see if I could get some credit and they said no. I have taken the phone to the apple store and they said it was the network not the phone. I have restored the phone, reset the phone, updated the phone, and still nothing seems to work.
However, when the phone is in 2g it seems to work fine. Except the only problem with that is when you are searching the net, or checking email and someone calls you it won't ring. This a mild annoyance because at least when I do call or someone calls me I can talk to them and they can hear me.
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When I am on my iPhone with a full or close to full signal, the sound cuts out for a while and then come backs a few times, and eventually drops the call. Its not every now and then...it's every call!
I have synced and restored it...and neither helped.

This does sound more like a faulty antenna than a SIM card problem to me. It may be that when the iPhone switches towers, as it does periodically, even when on full or near full signal strength, there is a time lag between disconnecting the previous tower and locking on to the new tower. This used to be a problem with old analogue mobiles that employed "hard" handoffs rather than "soft" handoffs, where the new tower is locked on to before disconnecting from the previous tower. In any event, with digital phones that still use hard handoffs, the technique has been refined to the point where the change is said to be imperceptible (does anyone know whether the iPhone employs hard or soft handoffs?).
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Will not call or receive calls with full signal!

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