I have now had my KRZR K1 for 3 weeks now ... Don't know if it's Motorola or Cingular (AT&T) software. I tried a KRZR at a Cingular store and it did the same thing. It also had the same phone ...
Probably will end up with the iphone, but I'll be keeping my krzr around just in case ... and made it better to create the K1. Bought phone directly from Motorola, unlocked.