Funny this thread should pop up as I had problems with my wife's Razor and both my kids Sync's this weekend. Both show as they have water damage and I know for a fact that non of them have been anywhere near water. My wife's Razor won't charge or turn on and my kids Sync's shut off after an hour.
I ordered some replacements off ebay this weekend for them because the AT&T store wouldn't cover them under warranty. Even my 8310 is showing as it has water damage and that has NEVER and I mean NEVER had water in it or on it but it works just fine but I showed it to them and they said that I'm one of the few that have obvious water damage but the device still works.