For the record, this happened to me last night, (first time ever, and I've had the 505 for over a year and a half now).
The epub I was reading was starting to get real slow for each page turn. So I edited the version on my PC with SIGIL to split it up more, then re-transferred it across to my device with calibre. I didn't delete the version I was reading because I assumed it would just overwrite it. When I then ejected the device, (cleanly btw), it just kept restarting over and over. After reading this thread I'm guessing the cache didn't match up with the new epub version.
Unfortunately I saw this thread after the fact... and how I resolved the issue was by removing all books on my device.
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