Hello,
Everyone that has this problem needs to take it into the Sprint store .
I just bought 2 HTC Touch phones 2 weeks ago. I LOVE MINE, its AMAZING
EVERYTHING WORKS . my wife on the other hand kept telling me about her phone not waking up when calls are incoming. we tried to soft reset and hard reset and everything else and nothing worked. TODAY, she walked into the Sprint Store , after they looked at the phone and recognized the problem they gave her a Brand new one iin the sealed box

and so far so GOOOOD

) IT WORKS FINE.
YOUR PHONE IS DEFECTIVE.
Good Luck !