A friend of mine has a 650 on which had problems similar to yours ScalyFreak. The buttons started to get non-responsive--and got worse and worse. Finally they quit responding at all. By then she couldn't do a hard reset because the buttons weren't working. She was actually able to read on it for a while--could turn pages with screen swipes. When she wanted to change books, she'd do a soft reset, which would bring her to the home screen where she could then navigate by the touch screen to the book she wanted to read. Couldn't change font sizes or any of the other options that required buttons though. Finally, she sent it back in to Sony. She sent it last week and has to wait for it to arrive at the Sony center before they'll send her out a new one. Hopefully she'll get it this week. (She's had it for a little over a year, but luckily purchased the extended 2 year warranty when she bought the 650.)
Good luck with yours!
dordale