[Desire General] sypack:
OK, ran logcat on my computer here at work.

This is what it spat out:

--------- beginning of /dev/log/main
D/dalvikvm( 597): GC_EXPLICIT freed <1K, 45% free 3897K/6983K, external 0K/0K, paused 74ms
D/dalvikvm( 364): GC_EXPLICIT freed 14K, 51% free 2818K/5639K, external 0K/0K, paused 68ms
D/SettingsAppWidgetProvider( 668): Widget is from a previous version... Let's update
D/SettingsAppWidgetProvider( 668): No instances yet... Wait for at least one instance to exist before adding global settings
E/wpa_supplicant( 2723): ioctl[SIOCGIFFLAGS]
E/wpa_supplicant( 2723): ioctl[SIOCSIWPMKSA]
E/wpa_supplicant( 2723): ioctl[SIOCSIWMODE]
E/wpa_supplicant( 2723): ioctl[SIOCGIRANGE]
E/wpa_supplicant( 2723): ioctl[SIOCGIWMODE]
E/wpa_supplicant( 2723): ioctl[SIOCSIWAP]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODEEXT]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODE]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODEEXT]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODE]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODEEXT]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODE]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODEEXT]
E/wpa_supplicant( 2723): ioctl[SIOCSIWENCODE]
I/wpa_supplicant( 2723): CTRL-EVENT-STATE-CHANGE id=-1 state=0 BSSID=00:00:00:00:00:00
E/wpa_supplicant( 2723): Failed to disable WPA in the driver.
E/wpa_supplicant( 2723): ioctl[SIOCGIWMODE]
E/wpa_supplicant( 2723): ioctl[SIOCSIWAP]
E/wpa_supplicant( 2723): ioctl[SIOCGIFFLAGS]
D/wifi ( 235): wifi doCommand: ret=-1
D/WifiStateTracker( 235): Reset connections and stopping DHCP
--------- beginning of /dev/log/system
W/ActivityManager( 235): Timeout of broadcast BroadcastRecord{40b46b48 android.net.wifi.WIFI_STATE_CHANGED} - receiver=android.os.BinderProxy@40ad6458, started 10007ms ago
W/ActivityManager( 235): Receiver during timeout: ResolveInfo{4069aa50 com.android.settings.widget.SettingsAppWidgetProvider p=0 o=0 m=0x108000}
I/Process ( 235): Sending signal. PID: 668 SIG: 3
I/dalvikvm( 668): threadid=4: reacting to signal 3
I/dalvikvm( 668): Wrote stack traces to '/data/anr/traces.txt'
I/Process ( 235): Sending signal. PID: 235 SIG: 3
I/dalvikvm( 235): threadid=4: reacting to signal 3
I/dalvikvm( 235): Wrote stack traces to '/data/anr/traces.txt'
I/Process ( 235): Sending signal. PID: 327 SIG: 3
I/dalvikvm( 327): threadid=4: reacting to signal 3
I/dalvikvm( 327): Wrote stack traces to '/data/anr/traces.txt'
I/Process ( 235): Sending signal. PID: 308 SIG: 3
I/dalvikvm( 308): threadid=4: reacting to signal 3
I/dalvikvm( 308): Wrote stack traces to '/data/anr/traces.txt'
D/dalvikvm( 235): GC_EXPLICIT freed 958K, 43% free 6285K/10887K, external 6395K/7516K, paused 69ms
E/ActivityManager( 235): ANR in com.android.settings
E/ActivityManager( 235): Reason: Broadcast of Intent { act=android.net.wifi.WIFI_STATE_CHANGED flg=0x10000000 cmp=com.android.settings/.widget.SettingsAppWidgetProvider (has extras) }
E/ActivityManager( 235): Load: 2.36 / 2.18 / 2.14
E/ActivityManager( 235): CPU usage from 9090ms to 0ms ago:
E/ActivityManager( 235): 1.6% 191/akmd: 0% user + 1.6% kernel
E/ActivityManager( 235): 0.8% 235/system_server: 0.3% user + 0.5% kernel / faults: 3 minor
E/ActivityManager( 235): 0.2% 2705/kworker/0:1: 0% user + 0.2% kernel
E/ActivityManager( 235): 0% 6/rcu_kthread: 0% user + 0% kernel
E/ActivityManager( 235): 0% 68/yaffs-bg-1: 0% user + 0% kernel
E/ActivityManager( 235): 0.1% 327/com.android.phone: 0% user + 0.1% kernel
E/ActivityManager( 235): 2.8% TOTAL: 0% user + 2.8% kernel
E/ActivityManager( 235): CPU usage from 367ms to 882ms later:
E/ActivityManager( 235): 3.8% 235/system_server: 3.8% user + 0% kernel
E/ActivityManager( 235): 5.7% 253/ActivityManager: 5.7% user + 0% kernel
E/ActivityManager( 235): 1.4% 191/akmd: 0% user + 1.4% kernel
E/ActivityManager( 235): 1.4% 2715/akmd: 0% user + 1.4% kernel
E/ActivityManager( 235): 1.9% TOTAL: 1.9% user + 0% kernel
D/WifiStateTracker( 235): Disabling interface
D/dalvikvm( 235): GC_FOR_MALLOC freed 542K, 45% free 6089K/10887K, external 4578K/5716K, paused 94ms
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/SettingsAppWidgetProvider( 668): Widget is from a previous version... Let's update
D/SettingsAppWidgetProvider( 668): No instances yet... Wait for at least one instance to exist before adding global settings
I/dalvikvm( 668): Jit: resizing JitTable from 4096 to 8192
W/ActivityManager( 235): finishReceiver called but no pending broadcasts
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
W/InputManagerService( 235): Window already focused, ignoring focus gain of: com.android.internal.view.IInputMethodClient$Stub$Proxy@4092b9a0
E/WifiHW ( 235): Supplicant not running, cannot connect
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
E/WifiHW ( 235): Supplicant not running, cannot connect
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
D/wifi ( 235): wifi doCommand: ret=-1
E/WifiHW ( 235): Supplicant not running, cannot connect
V/WifiStateTracker( 235): Supplicant died unexpectedly
D/WifiStateTracker( 235): Reset connections and stopping DHCP
D/WifiStateTracker( 235): Disabling interface
W/MessageQueue( 235): null sending message to a Handler on a dead thread
W/MessageQueue( 235): java.lang.RuntimeException: null sending message to a Handler on a dead thread
W/MessageQueue( 235):	at android.os.MessageQueue.enqueueMessage(MessageQueue.java:196)
W/MessageQueue( 235):	at android.os.Looper.quit(Looper.java:192)
W/MessageQueue( 235):	at android.net.wifi.WifiStateTracker.handleMessage(WifiStateTracker.java:986)
W/MessageQueue( 235):	at android.os.Handler.dispatchMessage(Handler.java:99)
W/MessageQueue( 235):	at android.os.Looper.loop(Looper.java:130)
W/MessageQueue( 235):	at com.android.server.ConnectivityService$ConnectivityThread.run(ConnectivityService.java:234)
D/WifiStateTracker( 235): Reset connections and stopping DHCP
D/SettingsAppWidgetProvider( 668): Widget is from a previous version... Let's update
D/SettingsAppWidgetProvider( 668): No instances yet... Wait for at least one instance to exist before adding global settings
D/WifiStateTracker( 235): Disabling interface
D/SettingsAppWidgetProvider( 668): Widget is from a previous version... Let's update
D/SettingsAppWidgetProvider( 668): No instances yet... Wait for at least one instance to exist before adding global settings

Looks like "E/WifiHW ( 235): Supplicant not running, cannot connect" is what causing the trouble....