Q: iPhone 4 Home Button not working properly

It may be an issue with the connection between the physical button and the iOS software. Try restoring as new. If that doesn't work you need to get your iPhone fixed.

Check to see how many apps you have open, (double click the home button) touch an app until your see the red x, then touch on each one to close it, do this until all of your Apps are closed, After you closed all of your apps restart the iPhone by holding down the on/off button and the home button at the same time for about 20 sec. 

I am having the same issue. I have reset my phone and the problem still persists.I agree with you that it must be a software issue because I too did not experience this issue until the 4.3 update was installed.  I went a week dealing with the issue then it simply went away.  after another few weeks the issue retuned and is becoming very annoying.  My home button does seem to work better when it is charging though. Please post an update if you find a solution.

I had the exact same problem and come to find out the home button allignment was a tiny bit off. If I just push the very bottom of the home button instead of the center like normal it works every time!!! See if this helps!

Works for me. I restore my iphone 4 and the problem persisted with the home button. Lightlypressing down the middle makes the home button work properly.

hardware issue or dirt button?

I'm pretty sure it's either dirty or slighty misaligned with the sensor below the face. My worked also slightly pressing down originally until I finally figured out the sensor was a little closer to the edge of the button. It may a  be different edge for other people. If you try all the edges I'm sure youll find which one works best for your phones button alignment:)

I got my iPhone 4 last november and the home button is already not that sensitive but i never bother on getting it back because its been 2 weeks of no cellphone and I need to get back to my work so I just left it like that

and now it seems it just gotten worse

I have the same exact problem as described by MrHazlett.  It is not misalignment or dirt - the round button failed to work all day - I rebooted over and over again to no avail.  I just got home and plugged it to iTunes and it started working again.  I got my iPhone about 3 months ago and have had this problem a few times but it usually went away. This is the first time it has persisted for a whole day.  I just upgraded to 4.3.3 over the weekend.  Will appreciate a prompt answer from Apple Support.  Thanks.

same issues here, powering off and back on helps for a while.  Apple please fix!

Same problem.  Seems to be software related as it is intermittent.  Works fine for a while after a reboot.  Tried reinstalling software for phone twice with no change.  Guess I am headed back to the APple Store Genius dooda.

Same exact problem here!