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Had the exact same problem - Even a Hard reset did not fix the problem. In a last ditch effort I eventually took both batteries out, pressed the D-Pad to remove any remaining capacitive charge, reinstalled the batteries -- and viola problem fixed.
of course I now had to restore everything.
This thing is still just a toy, so not too upset - but if I actually had to DEPEND on this thing it would be going back to DELL in small pieces.
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