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I had the same problem on my 626 a couple of weeks ago. Tried everything, but nothing worked. Looks like the internal storage has become read-only. I did some googling, and found that this is most likely a hardware issue, requiring replacement of the internal storage. That is possible, but requires a certain expertise. Having this done by a service center would cost a lot more than the reader is worth.
I looked upon this as 'end of life' and took the opportunity to buy a brand new HD3.
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