Here's what happened: I opened ScrabbleHD (don't judge me) and the screen was frozen. I hit the home button and it returned to the homescreen. I double-clicked to see what programs were still open, and when I swept up to close Scrabble, blue screen of death flashed for a second, then the apple appeared and it re-started. When I checked Diagnostics & Usage, I saw that there was a panic.plist and there was also an entry on the reset counter. I googled the panic.plist issue, and the advice is all over the map: everything from "return it, it's definitely a hardware problem" to "it's IOS 7." Naturally, I am concerned about it since the ipad is brand new. I really don't want to return it since I already put a screen protector on it and set it up how I like it. It is also under warranty so there's no rush. I'm wondering if others have had this issue, or know if it is hardware or software-related. Thanks.