I have the same problem as well. I'm thinking it's not the firmware but the 3G phone itself. We have 4 iPhones in my house, 2 3G phones and 2 2G phones. Putting all 4 phones next to each other and streaming the same videos over wifi, the 3G phones are noticeably much slower than the 2G phones, EVERY single time. I even get an error message saying "this movie format is not supported" sometimes on my 3G phones when that same video is playing on my 2G phones perfectly.