Hi George,
Actually there is a couple (litterally) things with the Handspring. Although I have been told by the retailer that these things happen with every hand-held, including "Palm Pilots".
My first one worked so well that I decided to buy one for my girlfriend. Well, wouldn't you know it, after she got hers, mine started to do wierd things. It would shut down all by it's self and erase everything on it - even though the battery had a full charge!
I took it back and exchanged it for a new one and thank goodness the palm os software backs up everything on your hard drive (sycronizes everything). Plugged in the new one and viola, everything was fin.
Next, my girlfriend asked me - "hey, does your back lighting go dim and then you have to push the back of it to make it come back?" NO! And your's shouldn't either! Back it goes...
Anyway, from what I understand, these types of things are common place in the hand held world - regardless of brand (Mindspring, Palm, etc...).
So I guess you kind of have to expect it and deal with it until you get a good one. Kind of like Windows - but there isn't a good one there...
Sorry, as you know I'm a UNIX biggot too...
Other than that I love my Handspring, the modules, and the way Handspring is going about helping developers.
Oh and yes, you can not update the OS on the Handspring, it has to be replaced (ROM).
Best regards and good luck,
Matt