We have 2 of the above that are failing diagnostics tests. We have sent them to a local "repairer" and this is their answer:
From what we can tell the issue here appears to be the software and not the hardware. The switches appear to be fine but until cisco recognise the issue and provide a bug fix these units will appear to fail a loopback test. Sadly we have no choice but to return them as unrepairable.
I would be grateful if anyone can help. I will gladly supply more info if required