Hey, he's talking about me.
So I got the 3Gs and restored it from my 1st gen phone. Apple suggested activating it as a new phone and losing all my customizations that I've made for 2 years. While that solution MAY work it's awfully inconvenient. My phone is not jailbroken. The "lens cover" just stays over the camera but never opens. The phone is still completely responsive while in this state.