Hi
The procedure I used was as follows:-
Plug iPhone into computer, in iTunes select the iPhone and then select Restore.
Once new firmware is downloaded and iPhone is restarting, upplug from computer.
I then did all setup etc. on the iPhone.
When things seemd much better I also downloaded quite a few of my frequently used applications, again on the iPhone not connected to the computer.
Once I was happy I did plug my iPhone into the computer but it was now seen as a completely new iPhone, not associated with earlier backups.
The battery life has been significantly better.
I could almost watch teh battery % indicater dropping before but now it seems to hold much better, hugely better.
One anomololy I have spotted though.
Before I went through this procedure, the GPS 'arrow' seemed to be almost permanently on, even though I had been through the 'quit applications' process a number of times.
Now this GPS arrow only seems to be on when an App I know is going to be using GPS is running or has just been run, the rest of the time this is off.
It may be I had a corruption in my backup that was causing the problem and my problem MAY have been different to other people here, I just offer this up as additional information.