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Yikes! I got the continuous flashing screen/reloading arrows thing for the first time last night. (I updated to the latest firmware about a week ago as well.)
I was using the touch screen to turn pages. All of a sudden, the pages wouldn't turn, and after 3 or 4 swipes the screen starting flashing with the reloading arrows.
I ended up resetting and it opened on the Home screen. When I re-opened the book, it took me to the first page from that reading session as if that reading session had never happened (notes from that reading session were lost as well -- but notes from previous reading sessions were still there).
I usually go back to the Home screen before putting my Reader to sleep. I'm wondering if the Reader does a "save" whenever you go to the Home screen.
I continued reading without any problems, but I'm wary now, not knowing if, when, or how often this will happen again.
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