Just happened to me for the first time. I got this reader December 2011. Just tried the reset (held for 10 sec) and then pressed the power button. Now it is frozen with the the refresh symbol (not spinning).
When I hit reset, the reader kept cycling on/off.
When I connected it to my computer, it went immediately to data transfer (which most times it doesn't). Disconnected and everything was fine (so far as I can tell right now) except it didn't remember where I was in the book I was reading.
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