well I got her phone up and running. I have to do a factory resate to get it to work again. seems fine now
I've seen speculation that due to marketing forces, the Moto Droid would get it's update before the Eris (which seems likely). In that case, I'll expect the Eris update a few weeks later.
Just a follow up on the minor fix:
Rare instances where the display locked or
appeared to be in an out-of-service state when
attempting to wake up the DROID ERIS from
screen saver mode no longer occurs.
The good news is I haven't seen this issue at all since the update.