Apple has announced that the iPhone reception problems are actually software problems:

Upon investigation, we were stunned to find that the formula we use to calculate how many bars of signal strength to display is totally wrong. Our formula, in many instances, mistakenly displays 2 more bars than it should for a given signal strength. For example, we sometimes display 4 bars when we should be displaying as few as 2 bars. Users observing a drop of several bars when they grip their iPhone in a certain way are most likely in an area with very weak signal strength, but they don’t know it because we are erroneously displaying 4 or 5 bars. Their big drop in bars is because their high bars were never real in the first place.

At the same time, Engadget isn't so sure that Apple's software problems explain all the reception difficulties. Many blogs note that Apple is still looking to hire eight antenna engineers, which means that the problem might be on the physical side.

Apple is also saying that those Steve Jobs e-mails saying the iPhone 4 was "just a phone" are fake. Meanwhile, Consumer Reports launched an investigation and they determined that the signal problems "aren’t unique, and may not be serious." (You can find another in-depth investigation here.) Now I don't know what the fuck to believe.