Hi Krishna,
I only saw the replies this morning sorry (thanks gmail for filtering the replies to an area I don't look at as often!).
I am up to phone number 3 in 3 weeks... first one was about 12 months old when it started doing strange things with battery use and crashing/turning off when trying to take photos or video and battery = under 20% left (ie it would turn off and say it was flat even though it was still at 15% or often more battery life... only to revive when plugged in, at which time it would say it was at the 15% or whereever it left off?? Always died when I tried to take pictures/video in certain places where the 3G signal was weak, so I dare say communication issues, battery... who knows.
SO phone number two, within less than a few days of getting it rebooted (and that was hard work as we kept getting severe storms interrupting the 7.04 update I had to put on it, in order to restore to my other phone?)... it stopped talking to our wifi network. Then a day or two after that, it went to greyed out. I went through the 'reset network settings' etc side of things, restored it as new without any apps etc, then it still was greyed out.
I requested another replacement mid last week... got the replacement by Friday, then had to go through the pain of updating yet again, I replied as I was going through the pain of setting it up.
Funny thing is, the next morning, it worked when restored as my 'normal' phone... for an hour or two. Then it dropped the ability to connect to the wifi again... then yesterday I got sick of it (2 days of it back on 3G/data again) and went to apple chat again to talk through it with someone, they said to do the restore network settings thing again... worked again for an hour or two. Then wifi not available at all. GRR.
Last night I again tried to restore the 2nd phone to new (figured it was worth a shot!) and then it was still greyed out as well....
Last night I got on apple chat again and talked to another Apple employee who said that given the complexity and repeated failure, it might be good if I can get into a store for them to run diagnostics on it. Its about an hours drive for me, so not an option at the moment. The next option is to send *another* replacement out and try again.
I'm glad I've paid the $99 for the extended warranty again... hoping before the end of January next year that I get a stable phone OR convince them enough's enough and to give me a newer one or something better than the constant return cycle. It'll work out cheaper for them to just give me a new one than all this back and forth I reckon!
So yeah, I haven't progressed to anywhere useful, sorry...!