First I want to say how pleasant and responsive the Kindle tech people was so I am only posting this to see if there are others in the same boat. I received my new Kindle at 5PM yesterday. After plugging the charger in it kept freezing & I kept resetting over and over so after an hour I called the tech line. He had me press the set once more and it responded so I said thanks. Well I downloaded a couple of books and it kept freezing over & over & I kept resetting. It would take forever and so about a hour later I called the tech again and he responded that I had a bad unit so they are sending me a replacement. Again this morning it seemed to wake up and started to work again and then it started to freeze every time Now the wheel will not work. I sure hope the replacement does not do this as it is impossible to enjoy using like this. Two other items. I noticed the software was 1.08. The other is the book cover that came with it is awful. I guess you have to place the strap down the right side over the buttons??? jim_joh

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I noticed the software was 1.08.
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If you really have that version of the firmware, then that might be the source of your trouble. Amazon hasn't released the next version yet. The only available version is 1.0.4.

... The other is the book cover that came with it is awful. I guess you have to place the strap down the right side over the buttons??? jim_joh The book cover takes some getting used to. I do not put the elastic strap over the right side of the reader, but I know some do. There's a little plastic tab in the cover that "latches" into a groove on the bottom of the unit. When the plastic tab is in the right place, it works remarkably well. In my cover, the tab was loose and kept slipping back into the slot in the suede and therefore wouldn't hold the reader. I grabbed the tab with tweezers and then used super glue (cyano-acrylate glue) to firmly affix it into the right position. It works wonderfully now.

Also, the cover folds all the way back, giving you about 1/2 to 3/4 inch protruding on the left -- an excellent place to hold the Kindle while reading.

The other is the book cover that came with it is awful. I guess you have to place the strap down the right side over the buttons??? jim_joh

Can't speak to your reset problem as the unit I received this week has been working flawlessly...and has version 1.0.8. BUT the cover leaves a bit to be desired. Several forum members have taken different routes to remedy the problem including purchasing new covers hitting the market from Waterfield Designs (http://www.sfbags.com/products/kindle/kindlecase.htm) and M-Edge (http://www.buymedge.com/).

If you don't want to spend more for a better case (that should have come with the Kindle in the first place) you can do like some (http://www.mobileread.com/forums/showthread.php?p=173930) who have taken a knife to the case and added velcro. I didn't go quite that far but I did cut the top left corner holder off and cut out the plastic tab. Then I placed some industrial strength velcro on the top left corner and the bottom right corner. Took about 15 minutes to do the job and works fine.

I'd be interested to hear if a new firmware release is going to be problematic.

Late news about my problem. This morning my Kindle started working and has been fine all day. Working like a charm and I am really enjoying it. I sent the tech a email and we both agreed to cancel the replacement. I am now a happy campter

I've now bought a newer cover for my Kindle (the mEdge one) but when I was using the original cover, I put the elastic band over just the bottom right corner. It didn't interfere with anything that way. It went down the back of the cover, then around and over just that lower right corner.

I did that for awhile, too. I found that after the tab bent a bit over time it held in the cover pretty well without it. Enough for me to feel ok if I was sitting at home reading, but I didn't feel quite secure with it reading out and about. I have the M-Edge cover now which I quite like in many respects. The Kindle is far more secure in it. The material is soft. I like the little pockets. I do wish the board they used was a bit sturdier like the stock case, though. I feel that the stock case probably protects the unit better for transport and the M-Edge for use.