Existing users, 
iPhone OS 2.0 Fixer: Setup As a New Phone
Posted 9 September 2008 @ 9am in Troubleshooting
There’s no such thing as a panacea for issues, including slow backups, application crashes, endless reboot and restore loops, inordinately poor performance and more, brought about by the iPhone OS 2.0 update. However, several users have found that the following is remarkably effective:
Restore the iPhone but do not restore from a backup. Instead, set the device up as a new phone. This workaround has resolved a variety of issues for too many readers to count. If you’re at your wit’s end, give it a shot.
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3 Comments
Posted by thatwasstupid
9 September 2008 @ 10am
So - if I do this - how do I get all the data back into my applications? Like how do I get my notes back into moleskinery?
Posted by Yelsmek
9 September 2008 @ 10am
Doesn’t reliably work. Many/Most of the traditional problems still exist (e.g., backups still fail after installing apps, random volume changes, general instability….)
Posted by inthefastlane.s
9 September 2008 @ 11am
This did work for me after my camera started say that I could take any more pictures. (after the upgrade to 2.0) I had deleted all the pics and everything and it still wouldn’t work. I took it to a genius bar and that was what we had to do to fix it. I haven’t had a problem since.