Anyway, whatever you've done to f... up your reader, you can still recover. So, no worries.
First, have you tried booting the reader while connected to the computer? Does the computer recognize the reader then? If it does, have you tried formatting the memory, or removing the Sony Reader directory?
Let's say you've tried all those things, but you have done something crazy that totally prevents your reader from starting the android launcher. That's pretty hard to do, but it is possible that you've done it. When your reader is "stuck" in Recovery mode (you held the HOME and MENU buttons while the reader was booting), you should be able to log into it from the "serial" (Serial USB Gadget) terminal. If you don't know what to do in Linux, you can restore from the micro-SD card.
Do you need instructions for restoring from micro-SD card?