I just want to let you know that my HTC Desire S died the same way yesterday.
To me, it seems to be a serious problem with HTC devices in general.
Koush confirmed that this was an issue with older versions of ROM Manager and has since been fixed. However, this happened toe yesterday using the latest recovery and the latest ROM Manager. He hasn't responded to me as of this post. A new phone is on its way from tmobile.
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