iPhone 3G S has dropped over 83 calls ...

It started yesterday (Oct 3rd, 2009) as a nuisance, but it grew to make my phone not useable.
The symptoms where:
iPhone has full bars and the 3G indicator is active.
1: Dial a call phone waits longer than usual to dial, but gets the call through.
2: user on the other line picks up long enough to say hello, and the phone does its hated beep,beep,beep after 3 seconds!
3: cannot receive calls.
4: try the internet or mail, and you get the connection error. (Obviously we have a network error here!)

I called 1800 my iphone , and the tech basically told me to do what I had done repeatedly for 5-6 hours.

1: shut the phone down and re-start. (No kidding, I didn't think of that!) Did not work...
2: hold the power and home button until the phone restarts. Did not work
3: go to settings

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