Followed the directions to the letter. Ended up going into an upgrade loop:

1. Failed
2. Said to hit OK to reset device.
3. Booted up
4. Started upgrade again
5. Failed at 1%

Called T-Mobile support and went through their front line support, then wireless--nothing. They're shipping me a new or refurbished unit in 5 business days free of charge. Return shipping of original phone is also free.

The support tech said that on the 3rd return, they upgrade your shipping to expedited (3 business days). He also read off a script saying that a replacement phone is dependent on:

1. Warranty period
2. Chipped LCD screen
3. Excessive plastic destruction

And others...

Basically, if you're in the warranty period and reasonably took care of your phone, you're OK. It does make me wary of trying the 2003 upgrade when the new phone arrives. When I asked, the tech said 2002 will most likely be on the phone (darn).

John