It appears I am in the same boat. Stopped at 16%, and now went get past the Tri-Color screen. I have tried using mtty on 2 vista machine, and it never detects the USB ports (which are local).
I dont think AT&T will take it back because it stays on the KAIS1*0 screen.
No matter which EXE (HTC or CINGULAR) I try to run now, I can only get to 1% and then the device reboots and come back to the SPL-1.56 screen. I cant browse the local device, ad MTTY doesnt recognize the USB ports. I must have ran this another 25 times tonight, and I just cant get past the 1% mark. Its see the KAIS1*0 screen, starts the install on the Kaiser, and the phoen reboots at 1%.
OK- I finally got Mtty to open and connect to the USB ports. Apparently there is a problem with Vistas USB drivers, and I had to use the XP drivers. Unfourtanetly I dont have a XP OS- just 2 vista clients here.
When I run the Mtty boot command I get the AT&T splash screen and the followign info:
Fill RSVD information for block 288 to 309
Storage start sector=0xAB80, total sector=0x10740
Storage start block=707, total block=1053
Total Bad Block in CE: 0
Erase physical block from 995 to 2032
si backup: Erase physical block from 2032 to 2048
No card inserted
But the good news is it came back up with Windows Mobile AT&T ROM 1 time. Howeever on all reboots it just hangs at the KAIS1*0 tri-color screen.