I ended up having my yahoo mail POP forwarded to gmail Working well so far. This way I essentially am going to use gmail exclusively without needing to tell all my friends and registered accounts about the change. working well so far.
The 2.0.1 update, as well as the remove account / add account did not fix the problem for me.
I cannot figure out how to remove account. For some reason I cannot find that option.Just "remove account" and add account again.
Here are instruction if you forgot how to add.
Motorola Droid - Setting Up Yahoo Mail IMAP | Mobile Technology Deals and Help