Why is it when the screen times out, the phone locks up?
UPDATE: FIX - Downgrade the OS.
Looks like it's a bug with IOS 4.2.1. Research shows it's a sleeping bug. Jailbreaking and installing an app like "Insomnia" fixes the issue, but at the cost of battery life. Not much to do but downgrade the OS.
Recent work done:
New battery, new power button, new headphone jack assembly, new LCD, complete reinstall of iOS.
Still needs work:
Home button (no tutorial for the 3G).
When the phone is started up, it works great. As long as the screen doesn't time out, it works normally. Once the screen goes black the phone become unresponsive to any input. Resetting it only sometimes works (probably due to the home button). When the phone is restarted the battery still shows a full charge.
Re-reinstalled OS had no effect.
Phone doesn't heat up noticeably.
No rattling, electric shocks, "extra" pieces from reassembly.