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From your description you appear to have the reverse of the hibernation some of us see on our EEs.
What happens if you hold the power button pressed until the track ball light goes out, does it restart? In fact that is the way I normally shut mine down.
Yes, it restarts.
Have you added any apps just before this restarting happened, if so uninstall them and see if that restores normal working.
I uninstalled the last four apps and it didn't make any difference.
Another thing, I must endorse what MasterTec says - DON'T even think about any other upgrade - we with the EE are stuck on the Ermine beta from Entourage, any of those others mentioned in this forum will brick the EE.
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