We had reported last week that a number of iPhone 4 users were reporting that the "super-sensitive" proximity sensor on the new iPhone was causing calls to be unintentionally dialed, hung up or muted without user consent.

We continue to receive comments and emails from our readers who have just bought iPhone 4 complaining about the issue with the proximity sensor.

Are you facing the issue? Folks at Macworld have few solutions to fix the issue:

• Reset Network Settings – Settings –> Reset and then tap on Reset Network Settings

Note: This will reset all network settings, including passwords, VPN, and APN settings.

• Reset All Settings – Settings –> Reset and then tap on “Reset All Settings”)

Note: All your preferences are reset, but no data or media is deleted.

• Restart iPhone 4 – Hold the power button until "slide to power off" appears. Slide to power off your device. When it is off, press the power button to turn it back on.

We believe that the issue is a software bug that seems to affect users who have setup their iPhone 4 from an older iPhone backup rather than setting it up as a new iPhone 4.

We expect Apple to provide a fix for the issue in the iPhone software update (iOS 4.0.1) that will be released in a few weeks to fix the incorrect reporting of signal strength to address the iPhone 4 reception issues.

Are you facing the proximity sensor issue while making calls on your iPhone 4? Let us know if any of the solutions suggested above helped in resolving the problem.

Update:

iOS 4.1 will fix proximity sensor and Bluetooth problems