Seems kind of odd that software could be the issue but if it is a miscalculation and that is why the bars drop thus sending the phone into search mode maybe it will help. We'll see but I am skeptical.
NEW YORK (MarketWatch) -- Apple Inc. (AAPL 248.44, -0.04, -0.02%) said Friday that it would roll out new software for its iPhone 4 to correct the formula it uses to calculate bars of signal strength after complaints from users. "Some users have reported that iPhone 4 can drop 4 or 5 bars when tightly held in a way which covers the black strip in the lower left corner of the metal band," the technology company said in a statement. "This is a far bigger drop than normal, and as a result some have accused the iPhone 4 of having a faulty antenna design." The new software, which users will be able to download for free sometime in the next several weeks, will make the iPhone's bars more accurate, the company said.
http://www.marketwatch.com/story/app...02?siteid=bnbh