I hate to revive an old thread, but I'm basically having the same problem and can't find a matching solution which was mentioned.
Just got my wife a Paperwhite, so I planned to reset her stock Kindle 3 (keyboard, wifi) and give it to a friend or sell it. It worked fine up until I did the factory reset. Now I have a few black lines across the display - about 6 across the bottom and 1 near the top - that are stuck that way. You can still read through them, so that's not a major problem.
The bigger problem is that it seems like the gray levels have disappeared as described in this thread. B/W text looks fine, but most images look horrible. I could be imagining it, but it seems like the image looks ok for a fraction of a second before all the grays disappear.
We bought the kindle new and haven't modified it. I heard a little noise in the kindle when shaking and based on the mentions of screen waveform data, I opened the kindle to investigate the rattling and take a look at the screen connector cable. Turns out the rattling noise was a loose screw which I promptly screwed in place. It was near where the screen cable connects, if that makes any difference. I then disconnected/reseated the screen cable and tried to factory reset the kindle again. Unfortunately I got the same results.
Any suggestions on what to do to get the gray levels back? I haven't swapped screens so I don't have any other screen to pull waveform data from. For reference I've also held the power switch for 20 seconds to see if that made any difference. Should I try using Kubrick? I can post pictures or provide any other info if needed.
Last edited by ramk13; 11-26-2013 at 03:36 PM.
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