Looks like there is a new update. I just plugged my phone in to itunes and it asked me to download.
So yeah this better fix my phone or else.
iPhone OS 3.1.2 Software Update
This update contains bug fixes and improvements, including the following:
• Resolves sporadic issue that may cause iPhone to not
wake from sleep
• Resolves intermittent issue that may interrupt cellular
network services until restart
• Fixes bug that could cause occasional crash during
video streaming
So yeah this better fix my phone or else.