This has not been solved by Virgin, as of today - Sept 6 2012. My original complaint to Virgin was August 17, 2012. I've spent 14 hours on phone over 10 phone calls. Written and responded to 7 emails - some from their senior staff. I have been asked the same set of questions 6 times.
I cannot sent SMS text messsages. MMS works fine. I can receive SMS and MMS.
They have a serious bug in the system. iMessage works between iphones, and MMS messaging works, but what the process they use to send single messages, it's not working. Somebody at Virgin is going to get fired.
Virgin support keeps sending me text messages from phone 0000000868. Message is $VMU$. My repeated requests to not send a text message (that I can't read) are ignored. They are probably asking me to text them!!
Calling techs at 1.866.553.9807 (the technical support line) and receiving no support at all. Have spoken with senior tech support and they cannot debug. Calling the number on their website is a farce, don't bother.
I called again today and got to start all over again with first tier customer support asking same questions - did it ever work, how many bars, etc. They must have closed the support ticket and won't acknowledge makng a mistake.
I am stuck with this ludicrous service, but I'd suggest you return your phone immediately if you can. I've been a Virgin customer for 10 years with no problems, strong signal, and low prices, but this will be the last phone. When it dies, it's done.