I have what appears to be the exact same problem right now! I came here to see if anyone else has had a similar experience and the photo you posted could have been mine. I'm charging my Reader now via the USB cable as I haven't done a long charge for a long time and I'm hoping that an overnight charge might solve the problem. (I don't own a wall charger; else I'd give that a try.) If recharging and rebooting doesn't work, I'll give Sony CS a call. I'd hate for this to really be dead as I've owned it just under a year. It should be under warranty; however, since I purchased it off eBay (albeit it was a new Reader), I don't know if Sony would honor the warranty.
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