Thanks again. After following your instructions, I've concluded that the touchscreen is hosed. The reset appears to have worked but the screen still will not respond to finger presses (I'm prompted to touch the Android logo to begin setup but the phone doesn't respond to presses). In addition, the phone continues to reboot periodically on its own. Prior to installing the OTA update, there were no problems with the touchscreen. I have no idea how the update could have screwed up the touchscreen but none of these problems arose until after attempting the gingerbread update.
Im very sorry to hear that this didn't fix it. Rather than messing with it yourself, call Verizon technical support and they should promptly over night a replacement phone. And heck, if you want a free upgrade, tell them that its due to the most recent 2.3.3 update on the DROIDX2 and request a phone that is not on this version. Usually they want you to stay within the same manufacturer,so, you could get a Droid3 which is what im considering ditching my X2 for. Its BS that we received buggy 2.3.3 as opposed to 2.3.4.