So yes, i found out that Arcsoft was the issue.
I AM ABLE TO CREATE NEW EMAIL ACCOUNTS WITHOUT HARD RESET!!
So this is what I did:
1. Uninstalled arcsoft 5.0.69.44 then soft reset
2. Go to this thread and get the file Arcsoft Sprint MMS 5.0.69.44-remove reg.cab and install it. It supposedly removes any reg entries that 5.0.69.44 installed that is normally not removed during uninstall.
http://forum.ppcgeeks.com/showthread.php?t=59412
3. Soft reset again.
4. Installed Arcosft Sprint MMS 5.0.69.44-full.cab from this thread:
http://forum.ppcgeeks.com/showthread.php?t=59218
One interesting note, after step 3 above I tried creating new email account and still couldn't. Only after step 4, was i able to.