I think the distance thing is borked too - I just hatched two eggs & replaced them at the same time, then walked at least 1km, possibly closer to 2, and checked their progress. 300m on one, 500m on the other :cab: Also lame that it can't track me at work as I'm walking my whole shift so I'd probably be able to hatch multiple 10km eggs a day.
Oh yeah, and it's down now for me. On the bright side, I hatched a Rhyhorn yesterday :cool: