Well after the last 2 weeks battling with this thing, wondering why sometimes it would connect and most times not (thought it was my computer's software settings - wasted umpteen hours - can I backcharge sprint?
), I finally found the reason tonight:
The USB port is loose in the phone!
It happened after I had been messing with it, plugging it in and out. Set it down on the bed comforter and the wrinkle must have held the usb plug at just the right angle, all the sudden my activesync starts up. Pick it back up and it stops. Try wriggling plug back and forth and VIOILA everything works if I hold it at an angle. Man the tethering is fast on this thing...10 mbps!
Anyways just wanted to put it out there in case others are having issues. I'm going to wait a week and just return it and get a pro, was thinking about it anyways and this made up my mind. Hope the pro doesn't have the same QC issues!