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Try using the latest ROM just released today.
I had to do a hard reset before installing this latest.... just something about my previous setup wouldn't allow it to install until I did the hardreset.
I was having problems with ActiveSync recognizing the phone so perhaps it was related.
As soon as I did the hardreset and hit "Y" for clear memory and "space" I went straight to bootloader mode and installed the update just fine.
So far so good...
-Rage
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