I just got the same issue. Of course it was about a week past Amazon's (the "authorized reseller/retailer") return policy, and yes it happened immediately after the firmware update. (For what it's worth the unit worked FINE before the update ... I wish I hadn't updated at all). After spending MUCH time with the online HTC support engineer (I'm currently at one hour in the chat), he is issuing an RMA... and I'm responsible for shipping (for a brand new unit that gets bricked with their firmware update), and it will take "at least 3wks from the time they receive the unit" to process the repair. So, with shipping time, I'm looking at over a month without this brand new unit. I've noticed that some people have commented that they're getting the "blinking red light" on one of their units, but the headset seems to work fine. My understanding is that because the other remaining base station / lighthouse is doing ALL the work, and the blinking one is not working at all, your headset may APPEAR to be working fine (when in fact you likely don't have 360 degree tracking available now). You can confirm this because if you're facing away from the one that works, and facing toward the blinking one, your headset will probably lose tracking (and go blank). You need to understand that it is NOT "working anyway", and you should get it fixed or replaced before your warranty runs out or your other base station gets bricked too.
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