I believe someone resolved a similar issue by connecting to a PC with the USB cable and doing a reformat as suggested by hpulley in another thread...
Quote:
Volume up plus power or to really start from fresh it seems you can hook it up to a PC via USB and reformat it. Unplug, turn back on and setnit up again.
Reformat won't kill it, will force a clean startup. Removes everything which is a bit heavier than the factory reset vol up plus power which will not remove everything.
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