Words of encouragement:

In the last few weeks, my iPhone will connect if I turn off WiFi on the phone and then toggle Airplane Mode. 

It's still pretty awful though because it drops the connection to the MicroCell a zillion times per day and I can only walk about 10 feet away from the MicroCell before my iPhone drops the M-Cell connection. 

Words of blame:

I'm pretty sure that this is all some kind of bug in Apple's iOS 4 and not a problem with the MicroCell.  Up until iOS 4.0.1 came out, my iPhone worked just fine with the MicroCell.  iOS 4.0.1 came out and then huge problems.  (And by "problems" I mean it wouldn't connect *at all*) 

iOS 4.0.1 was a fix related to signal strength.  The initial release of iOS 4 was erroneously displaying more bars of signal than it was really getting.  I think that there's a bug that was introduced in iOS 4.0.1 that's causing all of our M-Cell problems.  My iPad (iOS 3.2) connects to the MicroCell like a champ and works exactly like it's supposed to. 

Basically, it's the iPhone's decision about whether it's going to attach to the MicroCell or whether it's going to attach to the insanely weak cell tower signals.  Whatever it's doing, our iOS 4 iPhones make the wrong decision.

Words of (cranky) hope:

My $0.02, as soon as the Windows Phone 7 devices come out, I'm grinding this iPhone up in the blender and pouring it down the toilet.  Crossing my fingers that the WP7 devices work better with the MicroCell.