I have now purchased and returned two Edge 1030 devices to the LBS in the past 30 days while running multiple test rides of around 1,000 miles. Sensors work fine as long as you keep the software version on 3.60.
I have a Garmin Forerunner 920XT which I use simultaneously on rides to prove to Garmin that my sensors are reliable. As soon as you upgrade to version 4.00 the heart rate monitor intermittently drops out. The speed and cadence drops out within 5 minutes and may or may not reconnect. When the speed cadence sensor drops out the 1030 immediately picks up speed from the GPS. The cadence will just stick on the last reading. You won't know this unless you stop your bike and then spin the wheel. Notice no speed until you start moving again. But gee the Forerunner 920XT works flawlessly.
GARMIN: It's the 4.00 software update that's the issue!