After taking a dip in the pool, I was stuck in the Searching... mode for a day. Everything else worked on the phone. I tried rebooting. No go. Came to this site and attempted to try the "back up iphone and reset all settings" While backing up the phone, I decided to put a the phone next to my portable heater.
When I connected to iTunes, it was waiting for the ios 6.0.1 update so I decided to update. It was under the heater for about 10 minutes and after the reboot of the phone after upgrading, the phone works now. Hope this helps someone.