I'm trying this now and will let everyone know how it goes. I did a restore this morning and the battery still only lasts about 3-5 hours. Hopefully the reset will work.
Ok, following up on this, didn't work. My phone got stuck after the re-set (apple logo and spinning wheel) had a bit of a nightmare sorting that out. Even after that though still had really bad battery (fully charged at 2:00 am, woke up at 10:00am and the phone was off because the battery had run out)
Gone back to 2.2.1, only option for me right now.