@taylorkevin38: What version of the OS do you have? Tap Settings > About > More Information. The original version was 7.0.7004.0. There's been 3 updates, bringing it up to 7.0.7392.0. I, like you did suffer somewhat with random reboots and Marketplace crashes. Not really had any third-party apps going haywire but anyway after updating to the 'NoDo' version (7390), I've not had any of the early problems. Picture messaging has always worked for me. You must have your Data connection switched on (regardless of WiFi connectivity). Tap Settings > Mobile Network > switch on Data Connection. You can only send one image at a time and it only supports certain types of images.
On a more general note, as already mentioned, there’s a much, much bigger update coming in the autumn (codenamed 'Mango') which will bring some massive improvements a vast collection of additional features, to bring the phone up-to-par with similar offerings from IOS and Android.
I sympathise with you that the pace of updates has been slow. We were promised or at least, were sold the impression that MS could deliver updates quickly OTA, effectively bypassing the carriers and to maintain the momentum of the platform since it would be playing catch-up with the other major players from day one. What we got was a beautiful new and innovative phone that had a distinctly different approach from the regular icon menu driven phones but it was half-baked in many respects and lacked many features already present in most ‘dumb’ phones today.
But worry not, the features and improvements are coming and, if Microsoft (and in turn, o2) can deliver them on time, you should see good things before the 1st anniversary of your contract. You still have a unique device that I believe is way ahead of the competition in the way it integrates services, actions and tasks and seamlessly presents information on the go but you have to take a step back from what it lacks in order to appreciate it.
I will admit that although I still coo over my HD7, it's difficult to talk up the phone to my friends when they show me what standard features it doesn't have. Still, I can always bring out the big guns – built-in Office and XBox integration and that usually shuts them up for a while.