This deal isn't anything special. SprintPCS offers $100 back with a 2 year contract. That's what makes the cheaper phones "free". The only benefit I see from buying there is the free activation that normally costs $35. Of course local stores (BestBuy, Circuit City, etc.) regularly have other bonuses putting them on the same level with this deal. I saw one, right after I bought my phone, for $100 back from Sprint and $50 back from the local store, that was with the 2-yr agreement, like the deal mentioned above.
As to problems with SprintPCS service. I've had my phone for three months now. In that time I've made calls in Houston, New Orleans, Newark, and Princeton NJ. I've only had three drops, two of them while inside buildings. The main problem as I see it is their 'Roaming' condition. If you are in a SprintPCS digital area, but your phone has a stronger signal to an analog antenna, your phone will go on roaming and your will be charged for using it. The only options are to switch to digital only, or carefully check to make sure you're not on roam before using your phone.
DM.