I'm guessing this is what you've tried?
Quote:
How To Hard Reset a Sony PRS-350 (Full Reset)
Power off the Reader Digital Book.
On the bottom edge of the Reader Digital Book, using a thin object such as a paper clip, press the RESET button.
Turn on the Reader Digital Book.
While the screen displays Opening book... , simultaneously press and hold down the Previous Page Turn button and the Size button until the Reset All screen is displayed.
In the Reset All screen, press the OPTIONS button to delete all content, restore all factory settings, and clear the DRM authorization state.
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It sure sounds like corruption in the memory. If you could just get it to Factory Reset ...