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Seemed like a factory reset. I figured I had the update. But Software Number says 4.08.605.2, I guess that means I'm not updated. Can one of you gurus confirm this?fine. I quit whining long enough to back it all up and reload the OS. Internet is working again. Verizon said it could be temporary as the install will eventually come back and force itself on. I don't know a thing about the rooting and being able to deny the update for good.
it's been about a week since I received the update that did not install because of the low memory issue. I have never received the update prompt again and it's been over a week now. they must have stopped sending it to my phone.
I've tried to update for the last week or so and now have succeeded. Here's my story. I hope it will help someone else. I've tried to get assistance from HTC, but after a number of dead ends they were left with the reset option, which I totally refused. I have 200 installed apps, data, etc and was not about to go that route. I have a 32GB SD card and had already moved any apps that were capable of going there. I should also note that I am not rooted. My first call to HTC related to the 2-3 AM wake-up cycle after an update failed due to low memory. After much discussion, the tech pointed me to an obscure web address to download an memory fix apk. It installed as a "memory hotfix" app. It may have helped with the common low memory notification. I don't think it helps with the low storage notification. My next attempt to install the update (prompted by changing the system date back) was met with the process hanging on the "rebooting now" message. This occurred several times until I learned how to the wipe the system cache partition (Support: Wipe cache partition to clear system memory: HTC Amaze 4G / One S / Sensation 4G / Wildfire S / T-Mobile G2 / myTouch 3G Slide / myTouch 4G / myTouch 4G Slide). Now the phone rebooted, but the installation was not successful and I received a low storage message. At this point I removed large apps and updates on the phone storage until I had at least 350MB free. Clearing the cache partition, re-downloading the update, and running the installation went through I've had no problems and no early morning re-boots. I'm no expert, but this worked for me. Good luck.
P.S. I communicated all of this to HTC tech support and they were very appreciative.
We have gone round and round in circles and so far not achieved one iota of progress. My USB cable did not work, and I am trying to get a new one.
You would think I am asking for the earth - and my phone is still under warranty. I imagine he is stalling until the warranty period expires then he can tell me to go away.
SO - any advice I read on here - I am unable to replicate as the USB CABLE DOES NOT WORK!!! 

(And I am going on holiday in a few days unable to access the internet because I only have 2 -3 mb of internal memory. Is anybody else unable to install app updates?the partition clear worked with the last system update that had install issues. hopefully it works with this one.I've tried to update for the last week or so and now have succeeded. Here's my story. I hope it will help someone else. I've tried to get assistance from HTC, but after a number of dead ends they were left with the reset option, which I totally refused. I have 200 installed apps, data, etc and was not about to go that route. I have a 32GB SD card and had already moved any apps that were capable of going there. I should also note that I am not rooted. My first call to HTC related to the 2-3 AM wake-up cycle after an update failed due to low memory. After much discussion, the tech pointed me to an obscure web address to download an memory fix apk. It installed as a "memory hotfix" app. It may have helped with the common low memory notification. I don't think it helps with the low storage notification. My next attempt to install the update (prompted by changing the system date back) was met with the process hanging on the "rebooting now" message. This occurred several times until I learned how to the wipe the system cache partition (Support: Wipe cache partition to clear system memory: HTC Amaze 4G / One S / Sensation 4G / Wildfire S / T-Mobile G2 / myTouch 3G Slide / myTouch 4G / myTouch 4G Slide). Now the phone rebooted, but the installation was not successful and I received a low storage message. At this point I removed large apps and updates on the phone storage until I had at least 350MB free. Clearing the cache partition, re-downloading the update, and running the installation went through I've had no problems and no early morning re-boots. I'm no expert, but this worked for me. Good luck.
P.S. I communicated all of this to HTC tech support and they were very appreciative.
Yes, I had that and had to clear the cache to get the update to install.