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Hello Folks,
I continued to deal with this crazy issue for some time without resolution. I contacted amazon for about the 4th time and explained to them the situation and everything I had did and they agreed that i needed a replacement. I don't think it was a case of bad indexing as I removed all content from the device. Before this started happening I updated the unit to 3.0.3 My experience with customer service was amazing, they had a new kindle to me the next day.
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