My new Macbook Air has just produced the above error after running the Apple Diagnostics test, both the short test and the longer test. I've had problems since opening the box two and a half weeks ago. I always do a clean install, so after installing OS X, I used the key to install iLife11. The install got to 4 minutes to completion, then bombed out with an error. Tried shutting down, using the other USB port, even cloning the drive onto a 8GB memory key, but it still fails! When I got the air, it would boot into OS X well under 20 secs. Recently and also after the firmware update it was taking almost a minute. Even with a fresh install of OS X, I couldn't get it to boot in under 40 secs. I've reset the PRAM etc many times too. When I closed the lid and came back to the Air after a few hours, the screen would be unresponsive, pressing the trackpad would display the spinning beach ball. Even after a clean install, it would still do this. Looks like I will be booking a Genius Bar appointment. Nothing other than a new MBA will suffice, as I've totally lost all confidence in this faulty unit. Sam.