So here's an update: I downloaded a large update file today from enTourage. For some reason it would not work when downloaded onto 2 of my Windows 7 machines. No matter what I would do they update wouldn't work. So in a final attempt at a solution I fired up Linux on my netbook and re-downloaded the file. This worked. Win 7 was adding something to each download so the eDGe couldn't read the zip file properly.
The important thing is everything seems to be working again. I restored some content using the Archive feature and the rest is on my SD card so no big deal. It was just frustrating with the Win 7 issues. In the end this is much better than shipping the device back. I hope at some point the restore option on the device will do the same thing as this update file.