Desperate fr help with my RCA Lyra RD2840A!

[skud2121 0]

Just got the 2840 and was able to transfer a few files onto the device. Shortly there after everything locked up, computer and all. Now when the device is turned on without being hooked to the PC, it pauses at the RCA boot up screen for about five minutes and then flashes a warning about missing sys files. When hook to the PC via the USB cable, the device turns on properly and goes to the "HI-Speed capable . . ." screen. But I can not edit, delete, add or do anything to the unit. I have tried the reset button. Ihave tried formatting using XP as well as H2Forma, and still nothing. Have I wasted $200? Customer services is no help. Is there any one out there who might have an idea?