OK I just got off this phone with Pandigital tech support. I just LOVE the fact that I can talk to someone about this here in the US.
THIS IS NOT A RECALL! 
Tech support told me they are simply pulling the units off the shelf at the stores and their technicians are going in and installing the latest firmware and then placing them back up for sale. So if you already have one, or have one coming in the mail, its just a matter of putting the firmware on the device.
There is no hardware recall. Again, I got the sense that they are super serious about supporting this device.