[tvandyck7]

Did you try wiping the memory before you installed DMupdater? Not sure if it would make a difference or not, but worth a try before you smash your phone. I have had 3 replacements + the original and everytime I got a replacement, I would:
1.) install DMupdater
2.) open DMupdater and allow it to root and flash the recovery image
3.) install the nandroid backup from where I backed up my old phone
It has worked nicely every time. I make periodic backups just in case, so that I don't lose anything.
I sure hope that the 2.1 flash didn't leave something irreversible behind that screws with the software.