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Ok, saved myself a trip to the Apple Store by calling AppleCare and resolving the issue. Though I had to do a complete restore, after several hard-boots, my 3G iPhone is back to normal. Restored as a new iPhone, then sync all my music, videos, TV shows, Apps, podcasts, photos, contacts, calendars, etc. Not a brutal as I thought it was going to be, maybe 30 minutes of my time. AppleCare was right there the whole time, so I wouldn't screw it up...:p
 
I'm glad you figured out your situation. I was having the same issue for a while, but after a hard reset everything was fine. :)
 
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