I don't know if it's the phone or the OS, but my headset worked fine with my iPhone 2g. On my new iPhone 4, every bluetooth headset I use connects fine and I can hear the caller perfect. Except, they say it sounds like there's a pillow over my mouth when I talk. To the point of not even recognizing what I say. I tried calling the house, and I can barely hear myself, and it will cut in and out. Anyone else getting this issue?