I ended up taking back the black touch and got a white one, I am updating it as I type... the updating screen (black) was flashing on and off with the booting screen with the moving squares... update still completed though. The touch is on 3.0.1 so far no issues encountered (other than input lag) after playing with it for a bit and loading up my account. I will keep an eye on the touch for a bit before i reset it and box it up for Christmas...
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