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Help froyo menu issues

So I just got the froyo update and I noticed browsing the web is now harder along with doing normal actions like changing wallpaper... for whatever reason the menu key basically no longer works. I am confused... only holding the back key allows history to show, all menu options are now gone?
 
That's the first I've heard about capacitive button having a problem from a firmware upgrade. Do a factory reset and if that doesn't fix it, get a replacement.
 
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