Well...for some unknown reason and a bit help from a friend, the device came back to life miraculously just then. I am not sure which part of the action brought it back, but let's just record the steps here. I suspect the key is to disrupt the power as much as possible while it is at the initial coma of startup. Anyways, here's more or less what happened:
prepare a SD card fomatted in Fat 16 and loaded with 0408 beta firmware
usb cable (connected to the computer) and battery both on
SD card inserted
Reset->Screen flash->Nothing happened
Took off battery while green light still on
Reset again->light disappeared
plug in usb and battery->reboot
green light is still on ->reset
usb off, battery on->orange light
usb on->reboot device ->hola it works again!!
And thank you everyone for listening to my whining and offering help!
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