All previous users were having problems utilizing known techniques to root other Huawei phones of similar design.
Seems that the good folks at AT&T used a little trick to block the fundamental layers by which the root kits were using to gain access. It appeared that the phone had disabled certain logging features that would allow one to root the phone.
Here is how to do it (keep in mind you are doing this at your own risk, I am not responsible for any problems that you may encounter):
1. You need to install the latest Android SDK (search google for latest version)
2. download unlockroot v2.3
3. Follow the instructions and make sure that you have set your Settings > Development > USB Debugging box checked. I also set Unknown sources checkbox on.
4. Type in the following code on the phone keypad
*#*# 2846579 #*#*
This will open up the Service Mode
Go to Project Menu > Background Settings > Log Settings
Turn on Log Switch and set Log Level Settings to Verbose
go back one screen
Go to Dump and Log and place a check in all log settings.
Reboot the phone
Once rebooted use UnlockRoot and root you phone.
Confirm success by using a Terminal app from the marketplace (free) and when you open a terminal type su at the $ prompt. It will ask if you want to install SuperUser, accept. The terminal prompt should now read # instead of $ which means you are a root user.