Since we're talking about phone bugs, here's one I had to fight with for a while...
Lots of users are having problems with the GPS functionality on the iPhone 3G/3GS (see e.g. here). No apparent pattern there, but in Brazil, lots of users from one specific carrier were having GPS problems, and the beginning of these problems coincided with the start of Daylight Savings Time in Brazil. My iPhone, as well as my girlfriend's, are with this carrier and were experiencing the problem. Those with unlocked phones report trying other carriers' SIM cards and had GPS working again, but once you popped back the problematic carrier's SIM card, the GPS was dead again.
This nearly drove me nuts as I paid an obscene amount of money for the TomTom app and couldn't get it to work, so keeping up with the engineer spirit, I tried to debug the problem myself. I observed an interesting fact: there's a Clock app on the iPhone with a World Clock pane, and if I added a clock from any time zone, including my own, it was off by one hour. However the iPhone's main clock, shown on the top of the screen, was showing the right time. Eventually I discovered that if I restored my phone as a brand new phone (not restoring from backup) the GPS would work fine and world clocks would be fine... until you reboot the phone. After rebooting, the GPS is gone again and the world clock is off by one hour again.
Now you might ask what the time has to do with GPS. A lot, it turns out. GPS works by triangulating your distance from the satellites in the GPS constellation, which depends on knowing the exact position of the satellites. Since their orbits are corrected every so often, you must rely on so-called ephemeris data from each satellite, which is the required information to compute fairly exact orbits, and is updated fairly often (Wikipedia says GPS receivers should update ephemeris data every 4 hours). Originally this data is broadcast by the satellites themselves in their navigation message, at an awfully slow rate of 50 bits/s. You read it right, bits, not bytes or KB or MB, that's bits. As the navigation message is 1500 bits long, it takes at least 30 seconds to download it, which is about the time most standalone GPS receivers take to get a fix from a cold start (i.e. with stale ephemeris data). To work around this delay, most phones with GPS use the assisted-GPS variety, which downloads ephemeris data from a faster channel such as the cellular network. My theory is that some WTF-worthy excuse for an engineer at the carrier decided that, rather than doing time zone updates the right way, by updating configuration files to point to the new time zone, he'd just rather adjust the clock forward by one hour. The GPS chipset probably works with time zone neutral clocks so it asks for (say) UTC time and gets it off by one hour, and then computes the satellite orbits as though it were one hour later than it actually is. Obviously this means the triangulation computations go horribly wrong and rather than reporting something absurd, the chipset just pretends it couldn't get a fix.
It took a lot of complaining from a lot of people (to the carrier and to the government agencies responsible for telecommunications), but the carrier finally fixed the problem. However, it was a nightmare trying to deal with clueless customer support representatives who didn't try in the least to help (and probably were thinking all along `what does this wacko think GPS has to do with DST?'), just blindly suggesting that we restore the phone, or even try to uninstall the built-in Maps app, or blaming it on Apple and saying they weren't responsible -- and never mind that unlocked phones with SIM cards from other carriers worked fine, and that the iPhone support situation is unique in Brazil as Apple outsourced support to the carriers themselves. In the end, the customer support WTFs would be worth another post of its own, at least twice the size of this one.
But my faith in humanity is restored as someone, somewhere within the carrier, actually listened to these detailed explanations of the problem and how to fix it, and actually acted on it. I honestly thought it would take a class action lawsuit to fix it.