here's another picture of the same plant

The brown edges are symptomatic of two things. One is inconsistent moisture. The other is fertilizer burn. Even Hollytone can do this if too much is applied or applied at the wrong time. Fertilizers, even slow acting ones like Hollytone, should not be applied at planting.

The browning may also be at least in part attributable to insects. Photos are a bit fuzzy, but the appearance of the leaves suggests you have damage from lacebugs. Look on the leaf undersides. Lacebug nymphs leave dark, glossy speckles of excrement. Any lacebugs will be gone with the first frost so there's nothing to do now. Prevention next spring is a good idea. Your County Extension Service can help with the timing and spray recommendations.

Nothing indicates root rot, but do check the rootball for sufficient moisture.

akaMEgrower gave you good advice.

I saw your question to the Azalea Society of American on the Yahoo! Azalea Group.

A couple general concerns:

First, fertilizing after early summer can cause problems. Any fertilizer with nitrogen tends to promote new growth and prevent hardening off. Azaleas need to harden off and stop producing buds and new growth in mid summer, not early fall. If they don't harden off, all of this new growth will freeze damage when a frost hits. We came close to a frost last night up in the Fleetwood area.

Second, you should mulch these plants with something like pine park, pine needles, or oak leaves. Since these were planted recently and we had a very dry September, they aren't settled in very well. Mulching prevents frost heaving, winter damage and weeds, conserves moisture in the soil, and will keep the roots cool next summer.

Third, we had a dry September so watering a new plant was a challenge. First, if you didn't open up the roots when you planted, watering may not do any good. A root ball that is not opened up can dry out and not accept water even if you water heavily. Yours actually look fairly good. But if they tend to look wilted, I would first dig up and replant correctly. Rarefind Nursery in Jackson, NJ, has an excellent set of directions on planting at: How To Plant

Here is a link that might be useful: How to care for azaleas

Oops, bad link for Rarefind Nursery.

Their planting guide is at Tree And Shrub Planting Guide

Thank you both!! I'm so relieved it's not root rot!