I have the same problem with my N95. It is a real problem/bug and as described above, the screen blinks like it does when you normally open the browser, and then it goes back to the main screen. i am in telecommunications engineer in germany and work for a mobile phone operator. The problem does not seem to be network related but phone related.
The problem started after visiting some sites with the browser that opened links in other windows and quickly filled up the available memory, eventually causing the N95 to crash. i can still connect and download data with other applications e.g. Podcasting, Flickr, Gmail etc. but the web browser doesn't work anymore.
unfortuantely there does not seem to be a way to access the web browser's configuration settings without opening the application itself. so the options to fix the problem seem limited. doing a reset is a pain, especially since my girlfriend left for berlin with the laptop. is there a way just to reinstall the web browser? it would be great if nokia could make that available for download. or at least a program that allowed you to access the settings...clear cache etc.