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I've had this phone since April and the only good thing I can say about it is that it looks good and has got a good battery. The software is a disaster. The factory-installed system is slow, often unresponsive (it's got even worse after the upgrade to JB 11.2.A.0.31), but the worst part is that I can't install a lot of apps, and I can't update a lot of the installed ones. Usually I get the message "insufficient memory" or "couldn't update/install because of unknown error". I have lots of free memory (about 200MB at the moment). I haven't meddled with the system in any way. To tell you the truth, I'd love to flash the device with a custom ROM, but the process seems to be a nightmare, I haven't even managed to start the Android SDK, which is required to go about unlocking the bootloader (which is just the fist step, then there's rooting and flashing). Not to mention the loss of warranty and possibility of bricking the phone. Anyway, I wonder if anyone has a similar problem. This phone is a disaster, I haven't had such persistent problems with any of my devices. What's worse, the screen is ridiculously oversaturated. This is the last time I've bought anything from Sony.
I have this same exact problem! No matter what I do, the process stops after preparing computer. I am not entirely surprised, this phone has been the worst I have ever owned and has really changed my attitude toward Sony Mobile products. I have yet to meet a person who is satisfied with their Sony phones. Things either don't end up doing what they are meant to or else the phones are full of glitches and errors. Droping the Ericson from the product has dramatically dropped the quality. Someone I know has had their relatively new Mobile just pass Warrenty and now it is unusable.
Looking about now for a new phone. Definately NOT a Sony.