Chosen Solution
After upgrading to iOS 4 and then iOS 4.2 wifi doesn’t work. Apple “genius” confirms it is hardware problem and would take about $350 USD to fix it or he said I could “go on line and get the part and fix it”. Any suggestions? I have read lots of others have this problem, though my Apple store manager denies this.
You could downgrade it back to iOS 3.1.3/3.1.2 and see if that fixes the problem, since the iPhone 3G can be downgraded. You can download the correct firmware from this page, and restore it by holding “Shift” while clicking the restore button in itunes, and browse for the firmware.(On a mac, you will need to hold “Ctrl” not shift) and it will restore it to that firmware, but you should select the “Backup” option first, since you will lose your contacts, notes, and app data if you don’t Also: if it downloads as a .zip file, simply change .zip to .ipsw so iTunes can reconize it.