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I had a problem with screen garble on my 36xx iPaq years ago. I can honestly say that HP does a very good job of getting your device turned around quickly (I actually got a replacement from them on a 6 month old device.).
I really can't blame them for trying a couple of quick troubleshoots over the phone and then just requesting it to be sent in for investigation/replacement on something like this. It's not like there is much more they can do if you have a faulty unit without putting it in a techs hands.
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