I've had a similar problem - but always been able to come out of it - so far. Kind of affraid to turn it off now. Today, serveral times I turned the Revue on and held the connect button for varying lengths of time. Eventually, rather than going into recovery, it booted up. For now, I'm just going to...

Installed with a Patriot 16GB usb. No problems, rebooted, went to market and installed a file manager (BlackMoon filemgr?).

The 3.1 beta makes the device much more usefull and no problems so far.