Warning - you'll lose everything if you do a firmware reset - this should be an option of last resort.
To reset the firmware, you do a pinhole reset and immediately hold down the home key. You'll be presented with a screen with three options, one of which is reset the firmware. It took me three tries to get the timing right for the new menu to appear, I guess I wasn't pressing/holding the home key quickly enough after the reset. I don't remember the othe options on the screen (I was too worried about the firmware reset), perhaps tsgreer's memory is better than mine!
Once I reset the firmware, my Kindle started behaving itself again - I think that somehow (firmare upgrade, me messing around, act-of-G*d) my filesystem had been corrupted (the missing 90K I mentioned earlied, which was not just in a simple trash file) and the firmware reset rebuilt the filesystem. It's been running great for a week, so there are no terrible problems inherent in the 1.0.4 firmware, but the upgrade process might be a tad bit buggy.
Last edited by tlrowley; 02-22-2008 at 01:46 PM.