Just to let everyone know I do NOT have any issues with the signal when holding it in my hand.
However one issue I found is that strange buzzing sound that sometimes shows up when a phone rings. Well if you have a headset on and touch the outside of the phone, because it is an antennae, it induces buzzing.
For those wondering about the battery. It is far better.
Also if you have pandora and are in the lock screen. Wig ios4 double tap homepage to bring up the iPod controls and it will now control pandora for pause/skip. Should work with the 3GS as well.