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I had this issue this past week. I have the latest 3.x firmware installed. I could not get the phone to be usable screenwise for more than about 1 minute. My phone had worked great until I went to Hawaii for 7 days. I tried 6 or more times while there to hard reset the phone, but that made no difference. I removed the battery for a day, no difference. Nothing I tried helped at all. Here is the really odd thing, upon arriving back in Chicago, I turned the phone back on and it now works flawlwessly. I have no idea why it works now, but did not in Hawaii. Humidity? Bad cell network? who knows. Just adding my anecdote to the pile.
Your issue is NOT, as far as I can tell, related to your cellular network. I've had this same problem with my E60 twice. The first time, the loop was broken (finally) after MULTIPLE (i.e., 20+) removals and reinsertions of the battery. Then, it booted normally (but offered no explanation) and behaved itself until last week. The same thing happened, but this time removing/reinserting the battery 50x had NO EFFECT. In sheer desperation, I searched this forum, found the Green-*-3 "format" sequence and used it. My phone was indeed reformatted, but it worked. I was able to restore my data from my MMC backup. However, after completion of the restore, the E60 locked my MMC and it is now unreadable, unformattable, and unexplainedly "my problem" though Nokia's fault. Calls to the local Nokia help line afterwards resulted in a mildly chiding "that code is not acknowledged or authorized" for users. However, they had no other options for someone stuck with a useless phone but to bring it to a Nokia Service Center. There is NO CODE SEQUENCE which will allow a "safe boot" equivalent for a crippled Nokia SymbianOS SmartPhone. Try to find a Nokia Service Center in certain parts of the world! So, they want me to bring my phone in to have it "checked," but I'm 99% sure they'll find no problem (how I HOPE I'm wrong). There's nothing DUMBER than a "SmartPhone" gone bad. Except perhaps those of us who foolishly depend on them!