I searched the forum and could not find a solution or a post. Why is it that when someone calls me and I'm currently on a call, the party I'm talking to can hear the call waiting tone? The other party actually ask me if I need to pick up the other line. When in a conference call or other important phone call, this is very embarassing. I did not have this problem with my 2G phone. I have tried restoring the phone with the latest OS with no success. I called Apple but they did not have a solution. I also tried ATT still no luck. Everyone thought this was very odd at Apple and ATT.
Have you attempted to go to the Apple store and have them test out another phone to see if it's a phone thing or a service thing? You have to eliminate variables. If every 3GS phone does it then you're stuck. If only YOUR 3GS does it even after a restore then it's warranty.