Well I'm not entirely sure why we are all of the sudden having this many issues. I'm going to roll back a patch or two and see if that will help, but we will then lose GSM. I can't even get into adb shell to see what's going on with the system or bootlog...
As for people not being able get out of recovery I have no idea why that is happening. That is something that I can not replicate, but I will try... Could be the button is still thinking it is pressed down??? That's why pulling the battery works... We are having issues with LK's buttons and this is one of them... It works for me on my 500.
I will hopefully have some answers soon.
EDIT:
Renaming the update.zip is NOT necessary, I'm guessing it was just a fluke that is worked...