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If you use their Apple-branded case, the little rubber band that goes around the outside edge, does that fix the problem?

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Reports sent to Gizmodo seem to indicate that the bumpers do fix the problem: http://gizmodo.com/5571171/iphone-4-loses-reception-when-you...

I don't know because it doesn't seem to be in stock anywhere yet. (An odd mistake on Apple's part, as you certainly want all the accessories to arrive on the day that people buy their phone, otherwise they're much less likely to buy them).

What happens if you just insulate the phone from your hand with any other non-conductive material?

Then it stays at 5 bars no matter how I hold it.

I took a ziploc bag folded in half (therefore 4-ply) and wrapped it around the metal, and no matter how hard I squeeze it or cover it, the signal doesn't drop below 5 bars.

If not in at your Apple store, maybe a local issue, as they're in stock by the truckload at Apple stores nearby (NYC area).

With it on, the glass is separated from flat surfaces you set the phone on, and the phone looks less distinctive too (which can be a good thing).

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