I have the same problem, but I see from the lack of response no one else seems to. You can get your reader working again by pressing the reset, however, the problem seems to be that it fails to finish the installation of the new apps. Supposedly your books can be accessed through the "Barnes&Noble" icon (how intuitive is that?), however on mine, when I click the icon the machine tells me that "that app has not been installed on this PHONE". I now have a giant iphone that cannot make phone calls and cannot display ebooks. Of course there is no customer service number you can call, and they have yet to respond to my technical support email. I broke out the warranty and was not surprised to find exquisite details on what you must do to get warranty service EXCEPT for an actual address to send the reader to. It is apparent that Pandigital bases all of it hopes on new customers, not on repeat customers. It is a shame. I really liked the damn thing, until they made it "better". At least before I could actually read books on it.
I inserted an sd card, did the upgrade thing, then turned off and turned back on using the volume+ and the slider...after a few seconds a little green robot and a white triangle with an exclamation point in it appeared. I can not get the ereader to do anything --- What the heck is this and how do I fix it???