Apparently they say the phone can't handle 2.3.
That could be true. I have upgraded a couple of entry level phones from 2.1 to 2.2 and I've noticed they both slow down quite a bit. However, I upgraded the MyTouch 4g to 2.3.4 and it runs much better.
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Apparently they say the phone can't handle 2.3.
Have you thought about flashing cyanogen mod 7 on cuz im running right now and it works great,plus it is easy to install