Poor reception and easily disrupted wireless signals aren't the only problem with Apple's iPhone 4, users have also complained of a bug in the proximity sensor that caused the screen to flicker and accidentally registered screen touches. When Apple CEO Steve Jobs at an press conference in July about the "Antennagate" issue, mentioned that the company was "tracking some problems with the proximity sensor" and that they were working on repairing it for "next software update." The words were taken as said.
Howerve, since Jobs' presentation, there have been two incremental updates to iOS 4, but neither has fixed the problem with proximity sensor.
And, now, on Aug 27th, Apple Australia spokeswoman Fiona Martin told The Sydney Morning Herald that "the problem had yet to be fixed". So, the rumors of iOS 4.1 would fix the issue are disperesed.