My piece of advise .I been watching over your phone problem since you post over here.
Im really sorry on that phone problem.I will try to help as much as i can on this brother.
Issue 1.
Since you cant make outgoing calls,the suspect is your line(digi is your carrier i assume).
Last time i had this same problem where call failed and unsupported network from Maxis(customer complained alot).
So i did my own DIY for that phone.
Simply restore back my 3.1.3iOS (iphone2g) and walaaa,its no more.
p/s: unlock only.no JB
Maybe you can try that method since yours is Digi set.
Issue 2.
Signal bars problem.All iPhone 4 having this problem from the 1st days its launch.Holding while making calls,will reduce your signal bars.Apple still looking for this problem solution.
Since its made of metal barrier,so cant help much on that.Seems the barrier metal are surrounded and its functioning as Wifi,Edge,Gsm and UTMS.
So my advise,try to restore your firmware back to iOS 4.1 and look if the problem still presist,get your phone back to Digi for replacement.
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Thanks for the reply.
Yes, I'm on Digi. I've changed the sim card 3 times now, and the outgoing calls problem (Call Failed > Call Ended) is still there. Probably not Digi's problem then? And I'm on iOS 4.1.
About the signal bars, I'm using a silicon case, so reception shouldn't be a problem anymore right?