You say the battery is completely charged but when they're new the battery sometimes acts screwy (not normal). I'd suggest doing a long (several hours) charge (with an AC charger preferably) and another reset to see what it does.
I had a similar problem with my Cybook Gen3 (not a new battery). It was "supposedly" charged to full. I panicked (that's why I have an Astak Ez Reader too now) but after letting it change all night & resetting it, it came back OK and has been good ever since.
I'm not sure the 700 comes with the AC charger (maybe just the USB cable) but the 500 I have will not charge from a completely flat (dead) battery from the USB.
Also you might want to remove any memory cards when you try to reset. A bad card can sometimes cause problems.
Good luck & hope this helps.
Oh and you can have all the virtual (or real) hugs you need/want.