(sigh) I suppose it had to happen eventually, but I'm sorry it has happened to ou, Curry.
I expect that Sony will want to take care of this quickly for you, and I'm pretty sure they do monitor MobileRead, so posting here may help your turnaround on a resolution.
One bright spot: with as many good, solid units as they've already fielded, you shouldn't have to worry about a
replacement Reader having problems (or a replacement of that replacement, or ....).