The second issue was with the AP itself. No matter what I did it did not play well with my iPhone. Symptoms in my case included extremely poor range, the inability to actually use the AP when it did show as in range, and the failure of EDGE automatically kicking in. Switching to a different AP seemed to solve this. Once I did lose signal in my house, rather far from the AP, but I hardly noticed it the transition to EDGE was so smooth. I was reading this forum actually, and happened to notice it loading a little slower than usual (though this Website seems to do OK as far as EDGE goes). Think it would have picked up WiFi again on its own, but I forced it by going into settings. Bingo, it was back to WiFi (the other AP would error out when trying to reconnect--until I was within 15 feet of it).
That's EXACTLY my issue. I really don't use the 'net/Wifi features that much, so I'll be patient for what is sure to be a software update issue (I hope).
It's important all of us who have this issue let apple know on its iphone feedback page, though.
Here's the link:
http://www.apple.com/feedback/iphone.html