Just for the record. Went to Apple last week, got my iPhone 4 replaced ( BTW: true to form, no issue at the store, they were great, replaced my phone in under 5 minutes since I could replicate but never admitted of hearing this problem). Anyway, tested new phone in store (iPhone 4 32G with Motorola H720) and had 40+ feet range again and wife said sound quality was awesome. Then after only one week, back to muffled sound quality for people on the other end and range issues of only about 3 feet at times. In other word, don't bother unless you want to make a point to Apple, new iPhone 4 did not fix the issue nor does 4.0.1 update. I hope Apple fixes this soon. Considering going back to my 3GS which still has 3.1.3 until they get it fixed. Bluetooth is a must for me and the law in CA when driving. You would think with forum hits of over 73,000 Apple might say something.