I take no credit for this just reposting here. If you are rooted and have S-OFF do not take the OTA update. It has a HBOOT in it which may lock your phone. Sdobron on XDA has made a file in which he removed it and a few other things. I flashed this file and everything works fine.
New Features
Software stability
Improved battery life
Improvements
Improvements to Trace dictionary
Screen unresponsiveness resolved
Device taking screen shots resolved
Lock screen shifted up resolved
Icon pixilation resolved
Improved Wi-Fi connection
Green lines on photo resolved
Additionally, the OTA firmware.zip includes the following:
boot.img
hboot_8x60_1.18.0000_20110802_signedbyaa.nb0
pg2fs_spcustom.img
rcdata.img
recovery.img
tp_PYD_CYP340F0C.img
Flashing instructions:
1) Download the PG58IMG.ZIP from the link below
2) Place PG58IMG.ZIP on the root directory of SD Card
3) Reboot into Bootloader
4) Select Bootloader
5) A prompt will ask to initiate update
6) Confirm update
7) Press power button to reboot when prompted
http://dl.dropbox.com/u/14565631/PG58IMG.ZIP
New Features
Software stability
Improved battery life
Improvements
Improvements to Trace dictionary
Screen unresponsiveness resolved
Device taking screen shots resolved
Lock screen shifted up resolved
Icon pixilation resolved
Improved Wi-Fi connection
Green lines on photo resolved
Additionally, the OTA firmware.zip includes the following:
boot.img
hboot_8x60_1.18.0000_20110802_signedbyaa.nb0
pg2fs_spcustom.img
rcdata.img
recovery.img
tp_PYD_CYP340F0C.img
Flashing instructions:
1) Download the PG58IMG.ZIP from the link below
2) Place PG58IMG.ZIP on the root directory of SD Card
3) Reboot into Bootloader
4) Select Bootloader
5) A prompt will ask to initiate update
6) Confirm update
7) Press power button to reboot when prompted
http://dl.dropbox.com/u/14565631/PG58IMG.ZIP