I have a similar issue, Ill sit beside someone with a iphone they'll have 3 or 4 bars and ill have one or no service.. I dont know why, its been going on for a while now and now I have another issue... still works though.
Fixed it now, after ringing O2 about 5 times and getting a new sim card. Not sure what I did but, was messing around with the settings and it started working, 3 days and counting. Had a different problem Captain Malibu, I could have full bars and still not get the text.
Oh, really.. good you fixed it though. I'm still trying to figure it out I've been talking to people a few times and they suggested it might be a setting issue but they really weren't that much help as usual. I'm tempted to just get the 3GS but its pricey...