After installing few new iPhone applications from AppStore; I noticed the phone seems to crash on and off and sometimes the response to keystrokes literally used to take ~10s also. And not to say; some times I can’t even end the call that easily.
Finally I called the iPhone support, and after explaining everything the customer representative told me that the 2.1 software addresses all the issues (which actually released on the same day). So, after updating with 2.1 (one need iTunes 8 inorder to work with 2.1 updated iPhone); everything seems to be positive and works like a charm.
At least I don’t see any issues that I had in the last week; and good thing is; 2.1 also looks like fixed the batter drain issue; lets see how long the batter will stay from now onwards.