Well, it's a slippery slope, but it sort of has to be firmware. That's what I was doing, just summing up based on accumulated intell. The hardware appears well laid out, considering their track records with getting updates just so, that my touch works like a champ minus the lighting, and that a TON of new Glo buyers were not complaining it sort of had to come down to multiple hardware versions or firmware/OS issues. If there were multiple hardware versions and SameerH knew that, I'm pretty sure Mrs. O would have ended up with a fully working unit.
Seems to me you can return/swap it while in the period and get a brand new one according to Mrs. O, or wait and get a firmware fix eventually. My guess, is if they made the mistake of not updating everything and caused the problem by shooting themselves in the foot then the next firmware will cause the device to boot twice, like the last official one I got before 2.4.0 on the Touch which was 2.2 something, and probably be a two stage update. The problem may be as simple as that...
If you're freaked out exchange it -on their dollar.