Did iPhone 2.0.2 fix the issues?
Apple released iPhone firmware 2.0.2 for both first gen iPhone and iPhone 3G to fix some outstanding bugs. However, the major fix comes for the iPhone 3G with a full modem update. This is supposed to fix the dropping calls and other issues with 3G connectivity.
iPhone Dev team also released pwnage 2.0.3.1 addressing the jailbreak fix for the new firmware. So if you prefer your iPhone jailbroken, then use this at your own risk.
For the meantime, my first-gen iPhone has been jailbroken to support Qik for full video streaming but my 3G is in its original firmware.

