I'm sorry the update didn't resolve your issue. I'd recommend using our Android reboots troubleshooting document to resolve this issue. Most likely one of the applications installed on the device didn't agree with the update and the master reset will resolve the issue.
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At the time this started, I had no apps installed that were not pre-installed on the phone. I tried going into app manager and uninstalling apps I don't use (like Flickr, Facebook, Friend Stream, Twitter, Peep, etc.) but those will not uninstall, and every time I try to turn them off, they just start right back up again. I uninstalled everything I could prior to doing the update and that didn't appear to have any effect. I've tried turning off every app I can think of that will let me turn it off. tried switching the USB debugging settings, etc. no luck there either. I appear have plenty of memory available on the phone. I believe on one of my many trips to my local Tmobile store for help they did reset the phone at least once. Running out of ideas here.