My wife is on her second LG ALLY. The first one developed audio problems and was replaced under warranty. However, both phones had the same issue. The factory update, won't update. I downloaded the special ALLY UPDATE thing from the market, but it just never updates. I eventually have to just cancel. And now her phone is eating SD cards. Hers came up bad, so I gave her a spare I had from my OG Droid. In 2 hours, it was saying that was bad too. I ordered her a new phone, but I'd like to use her ALLY in a different capacity, so I'd like to fix these issues.
It also has an issue where the lock screen gets all out of whack and the sliders don't line up.