FWIW, I feel very strongly that a conversion at less than $1 will inevitably lead to a lawsuit and a further downward spiral. Although I believe your prognostication about <$1 could be accurate, but I am concerned that at less than $1, given the unlimited dilution, there is no support for the stock. In other words, we hit the wall and the stock goes worthless.
There may be news out of Ramtron soon to try and correct the possible conversion difficulties. What needs to happen is the following: In exchange for all of the preferred shares outstanding, new shares are issued, containing a provisioin that limits the number of shares issued (say, 15 million, or a $2.50 price or something) with a maximum conversion price of $5 (replacing the $10 maximum). Given the problems that convertible holders will have getting their money out at these price and with this overhang (the shareholder vote, possible delisting, etc.), I think the holders could be convinced, er, pressured.
Remember, at 41/64ths, we get some additional 30 million share issued. Would you really buy the stock at those levels?