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It looks as if you have got to the 'look at the insides' point. If your screen is still not responding then there may be a hardware problem - usually a cable that isn't making correct contact.
The fact the reader screen is showing 'initializing' just means that is what it was showing when the fault occurred - it will continue showing that even if you removed the screen, that is the way of e-ink.
The other possibility is that there are bad cells in the flash memory that are preventing a program from running. The only way to check that is to what vicinc did with his PE.
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