Same thing happened to my friend's 650. She sent it in for a replacement under the extended warranty she had purchased. This was a month or two ago--Sony didn't have any replacement 650's, so they ended up refunding her original purchase price of $229. It actually worked out well for her, because she was then able to buy two of the refurbished 350s (one for her and one for her husband) when Sony had them on sale for $70 a piece.
Hopefully, Sony will be able to replace your reader with a good working one!
dordale
