the OS seems to work but in DM it still is trying to connect (i guess this is the last part). it is stuck on connecting to device and will not go through. however, it appears i can use all the phones functions.
Yup...same thing happened with me on either .75 or .76 I don't remember...I waited about 20 minutes before I decided what the heck, I was gonna pull and reseat the USB cable...when I did, it finished the process...
I'm not sure why this hasn't been corrected, but disconnecting your BB during an OS install can cause bigtime problems that are very difficult to resolve.
I followed this thread and disconnected while my BB was rebooting and although it seems like things are working properly (currently restoring data), I read that this is probably the last thing you want to do.
In short, while installing the new OS, "Connecting to device" on the DM is normal while the BB shows the hourglass. This can take as long as an hour (typically sounds like about 20 minutes though).
If you don't see the hourglass, maybe that's a different story I don't know, but just want to post so someone else doesn't make the same mistake I did after reading this thread.