cdc_phonet blocks access to USB device

running 2.6.35-25-generic-pae on a 32-bit Ubuntu 10.10 machine I receive the following error
(from Nokia USB flashing tool - http://tablets-dev.nokia.com/d3.php?f=flasher-3.0)

root@maverick10:/home/bjv/bin# ./flasher-3.0 --enable-rd-mode --set-rd-flags=serial-console
flasher v0.8.7 (Oct 17 2006)

Suitable USB device not found, waiting
USB device found found at bus 002, device address 035
Error claiming USB interface: Device or resource busy

looking at dmesg output i see:
[523452.768018] usb 2-1: new full speed USB device using uhci_hcd and address 35
[523453.067897] NET: Registered protocol family 35
[523453.079825] usbcore: registered new interface driver cdc_phonet
[523464.184540] usb 2-1: USB disconnect, address 35

This persists until i blacklist cdc_phonet, phonet in /etc/modprobe.d/blacklist.conf, and unload the modules.
thereafter I am able to flash the nokia handset correctly again:

root@maverick10:/home/bjv/bin# ./flasher-3.0 --enable-rd-mode --set-rd-flags=serial-console
flasher v0.8.7 (Oct 17 2006)

Suitable USB device not found, waiting
USB device found found at bus 002, device address 034
Found device SU-18, hardware revision 1801
NOLO version 0.9.14
Version of 'sw-release': <no version>
The device is now in R&D mode
Set R&D flags: 0010

this is not the first time i have flashed this handset, so it looks like a regression to me.
cdc_phonet did not cause a problem for me in 9.10

ProblemType: Bug
DistroRelease: Ubuntu 10.10
Package: linux-image-2.6.35-25-generic-pae 2.6.35-25.44
Regression: Yes
Reproducible: Yes
ProcVersionSignature: Ubuntu 2.6.35-25.44-generic-pae 2.6.35.10
Uname: Linux 2.6.35-25-generic-pae i686
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.23.
Architecture: i386
AudioDevicesInUse:
 USER PID ACCESS COMMAND
 /dev/snd/controlC0: bjv 1760 F.... pulseaudio
 /dev/snd/pcmC0D0c: bjv 1760 F...m pulseaudio
Card0.Amixer.info:
 Card hw:0 'Intel'/'HDA Intel at 0xfe9f8000 irq 43'
   Mixer name : 'Realtek ALC887'
   Components : 'HDA:10ec0887,104383bc,00100202'
   Controls : 25
   Simple ctrls : 15
Date: Tue Feb 8 13:36:30 2011
HibernationDevice: RESUME=UUID=3b0f54c5-349b-48a7-a4d8-7bda3b3d9f03
InstallationMedia: Ubuntu 10.10 "Maverick Meerkat" - Alpha i386 (20100720)
MachineType: System manufacturer System Product Name
ProcCmdLine: BOOT_IMAGE=/vmlinuz-2.6.35-25-generic-pae root=/dev/mapper/vg--sda3-lv--root ro quiet splash
ProcEnviron:
 PATH=(custom, user)
 LANG=en_US.UTF-8
 SHELL=/bin/bash
RelatedPackageVersions: linux-firmware 1.38.3
RfKill:
 0: phy0: Wireless LAN
  Soft blocked: no
  Hard blocked: no
SourcePackage: linux
dmi.bios.date: 09/21/2009
dmi.bios.vendor: American Megatrends Inc.
dmi.bios.version: 0317
dmi.board.asset.tag: To Be Filled By O.E.M.
dmi.board.name: P5QPL-AM
dmi.board.vendor: ASUSTeK Computer INC.
dmi.board.version: Rev X.0x
dmi.chassis.asset.tag: Asset-1234567890
dmi.chassis.type: 3
dmi.chassis.vendor: Chassis Manufacture
dmi.chassis.version: Chassis Version
dmi.modalias: dmi:bvnAmericanMegatrendsInc.:bvr0317:bd09/21/2009:svnSystemmanufacturer:pnSystemProductName:pvrSystemVersion:rvnASUSTeKComputerINC.:rnP5QPL-AM:rvrRevX.0x:cvnChassisManufacture:ct3:cvrChassisVersion:
dmi.product.name: System Product Name
dmi.product.version: System Version
dmi.sys.vendor: System manufacturer