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3g signal drops when holding phone horizontal......

Yes, either your hand is covering where the radio is (it may be in a different location than the wifi receiver) or there is just a glitch in the 3G indicator. Does it really effect being able to browse the web or are you just basing it on what the signal indicator says?
 
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I jusr noticed this, when i hold the phone horizontal my 3g signal goes to crap. Is this normal?

Does it happen when you lay the phone down. It doesn't matter if it's radio or a glitch in the indicator, this is a major problem that is causing batteries to drain quickly. Seems there are some unknown factors causing the Eris to lose, or more commonly, get a weaker signal when compared to other phones.
 
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If you're on the periphery of the 3G signal in your area, then something as benign as turning the device horizontal certainly could cause it to drop off to a stronger 2G or 1G signal, even having your hand block the receiving antenna would make a difference.

If you're not, that is, if you're in a strong area for 3G and this is happening, your device needs to be looked at by a tech and perhaps replaced.

Check tower and signal-strength maps for your carrier in your area.
 
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