iPhone 3G + iOS 4 = A Mess
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I had this problem, and while restoring it has helped some there are still some annoying glitches. Apple is enjoying the money from iPhone/iPod/iPad sales… and getting as sloppy as Microsoft in the process.
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The views on this site are mine and mine alone, and do not reflect the views of my employer, Media Matters for America

In the interest of balance, when my iPhone 3G was my everyday phone, I updated to iOS4 and experienced no problems with either performance or stability. That remained the case until I upgraded to an iPhone 4 and passed my old 3G to my wife to replace her crappy Samsung feature phone.
I did a full reset and factory restore, and since then she had problems with it unexpectedly rebooting and draining the whole battery in less that 12 hours of standby usage.
I just did another factory restore and things seems to have settled down and returned to how they were when I was using it daily. While there’s clearly a problem, I think at least some cases are due to the restore not “taking” properly.
I too have a poorly functioning iPhone 3G running iOS4.1.
In the 21st century, Microsoft has become IBM and Apple, Inc. has become Microsoft.
I miss Apple Computer–and yes, I was sad when the dinosaurs died.
I have the same issue. If you disable the search features you don’t need (like music), it loads much much faster. Not as fast as before, but at least a step there.
Lifehacker: Disable Spotlight Searches to Improve iPhone 3g performance
I also installed iPhone Vista on my 3g. I just tried that searchlight trick. I hope it works because “down”grading to 3.1.3 doesn’t look fun.
MadDog: How weird, I had basically exactly the same thing. iOS4 was fine until I factory-reset and sold it to a friend. Now it runs like utter crap.
I’m glad I never went in with Apple, and I never will. Just drop it and go Android.
haha
Pete: It is wierd, but as I said, another factory restore and it’s been running fine again. All this nonsense people have been coming out with about disabling spotlight is just voodoo. I’ve had iOS4 running just fine on a 3G and it’s running just fine once again.