Sorry to hear you guys with the frame bag are experiencing problems. Like already said, perhaps the MoCo will do something about it since there are so many of you.
Just as a note, I went with a custom made bag on the side of my bike. I did it for two reasons - better quality and I could place it where I wanted it. I've had my bag on for over 6 months and haven't had any problems at all. Just thought I'd mention this in case anyone else wanted to make their own custom bag.
Fehrc's bag is nice from what I saw in pics before (I think on V-twin forums) but I think a little pricey.
I just bought a 100th Softail windshield bag for mine and modified to mount just like his. Currently, it's held on with nylon zip-ties, but I've got some leather strapping made up with velcro ends so I can make it removable.
All I did to the bag was remove the outside metal frame (drilled the rivets out) and put a couple horizontal slits on either side of the inside metal frame. Put the zip-ties through and I was done.
I have the frame bag too, and it ruined my stock belt guard (stripped it down to bare metal in one spot) and also left some discoloration to the frame where it was rubbing. I have since replaced the guard and re-installed the bag, however I used some aluminum muffler tape to protect the new gaurd and the frame tubes. With the bag in place, the aluminum tape is not visable.