Yep I think Lots of people have had the same prob - me included -
Follow the above instructions and it should be ok.
use a micro SD reader to upload the DELL version of 1.6 (no others will work) to the root of the card.
Reboot - mine took extra long to come back up... sticks at DELL logo... be patient.
Once thats working - copy the 2.1 ver "Update.pkg" to the SDCARD reboot it again and 2.1 will install.
Turn on by holding down both vol buttons and ON button.
Select option 2 - update from SDCard, screen txt should be blue.
Press the camera button - it should then install 2.1
Once it all reboots - wait for some time (I thought mine had bricked again) paused for a while on the DELL logo, then it came to life... 2.1 up and running
Been stable since then, but there is some lag when selecting apps for the home screen that is a bit crap. Mine was quick before.
Although photos feels a lot quicker