Update
The partial fix I thought I found (above) didn't work. Went back to SEARCH and found a fix posted in April 2009 by grfxguy. I dosen't exactly match the symptoms of my problem, or have the same failure message, but I tried it anyway, and it seems to have worked so far.
ERASE THE PHONE LOG
1) Start the Blackberry desktop, then connect the phone
2) Click on Backup & Restore
3) Click on Advanced
4) In the right hand window, scroll to Phone Log, then select it
5) Click the Clear button below the window
6) Click Return to Main Menu and Exit the program
Did the trick for me so far, and it cleared the 1st error message that I was still getting
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