I know people have had a lot of bad experiences from Sony but a couple of months ago I dropped the lower half of my 505 into the bathtub. The warranty said it doesn't cover water damage. I was heartbroken, and sent it in to see how much it would cost to repair. I kept checking up on it and when they updated my workorder onine I saw it was getting sent back to me. They ended up replacing it and all I paid was the s & h ($8) and $30 for the replacement.
When my reader gets frozen (it has happened maybe 5 times so far) I hold in the reset button and (I think the word I want is toggle) keep flicking the power switch over and over. Sometimes I will hold the power button for 20 seconds while pushing the reset button. I would try plugging it in with a wall charger. Call Sony and the store u bought it from and let them know you are having problems so if you do need to return it/exchange it you will have proof that it wasn't misuse that broke it (if it is indeed broken). Document who you talk to, what time you called, etc.
One time I had a problem with my car insurance and called in. They said they would fix it as soon as their computers came back online, they were having some difficulties. When I checked the next day the problem wasn't solved. They ended up going back through the calls until they found my conversation after I told them the day and time I called and fixed the discrepancy
You never know when that stuff will be important.
Sorry for your troubles and good luck; keep us updated!!!!
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