1) Wake screen after receiving notification (text etc). Pull down notification bar, back and multitask soft buttons grey out and phone will not respond. If I'm listening to music when this happens, the song keeps playing until I pull the battery or the phone reboots itself.
2) General lag is awful... More than half the time it has noticeable hangs switching apps or opening anything. I'm down to next to no apps that i've installed and have even tried removing just about everything I have with no improvement. Scrolling stutters about half the time as well. And the image you see with the camera open stutters badly also. Every once in a while it's buttery smooth for a few seconds then slows again.
Battery life is great and I love the form factor of this phone. I REALLY don't want to get rid of it but I'm at the point where it's more important to have a phone that's usable than have the extra screen size etc.
It's bone stock and I haven't tried a factory reset.