I read that there are some pretty serious dangers once the battery starts to swell up like that. But besides the danger of explosion or fire, the charge life on those batteries sucks once it starts to swell. When I noticed that the battery in my Razr was starting to swell the phone would run hot no matter how little I used it (stayed cool in stand by mode). But once the battery bloated so much that the kevlar back separated from the plastic edge, the batter charge sucked. I would be down to like 40% charge left in only 90 minutes of being in stand by mode. I was constantly carrying external chargers and would just be pissed that the phone would expend the charge from two external batteries (one of them had something like an 8500 mAh capacity). I finally converted my phone with one of those Maxx kits and haven't looked back since.
I would consider changing the batteries or dumping the phones all together based on charge life alone.
Thanks for the info, do you happen to remember where you read about the batteries. I need to find some kind of documentation that clearly states the dangers. The battery life was a big problem for us as it required me taking a bunch of chargers into the classroom but once we stopped using wi-fi to upload I switched the phones over to air-plane mode which worked for our purposes and doubled the battery life. Just enough to get through the day for us. It sounds like the batteries are only unsafe once they start bloating, would you agree?