Some people have been reporting issues with there iPhone 4 freezing at some point during use which is possibly an update issue as I am running 4.2.1 (also known as 4.2) and I don’t have these issues.
I did a complete reinstall from the 4.1 that was on my iPhone 4 when I got it and I think this might be a fix for others who are having issues or maybe a faulty batch of iPhone 4’s sent off the production line it may also be from a backup that could be causing all of these issues. Some are saying DO NOT restore from an old backup restore the iPhone and start a fresh.
I highly recommend before doing any of this make sure all “Purchases”, Contacts etc are copied to the computer first before going ahead with this idea as you will loose it all if you don’t.
In the past people have also reported yellow spots on there screens this hasn’t been reported for a while that I have seen but that was one of the other issues with iPhone 4 however I am yet to see it on mine.
If you are running iOS 4.2 (iOS 4.2.1) I would recommend a complete reinstall after backing up everything up as above (Contacts, Music, etc) and then reinstall iOS 4.2 (iOS 4.2.1) and see how this goes. If all else false take it to an Apple Store and they will likely give you a replacement or go the store you got it from and ask for replacement.
Note: If taking your iPhone 4 to an Apple Store you will not be getting a “New” handset you will be getting a “Refurbished” one.
Here is a photo to show you I am running 4.2.1