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In my case a w755, if it just reboots and goes back to the bootloader usb init bluescreen no matter what, try tethering the phone to your computer and run 'motorola software update', it was able to connect, update/uncorruptify the software on the phone and now it works again!
I had this same issue.. If you have the contacts back up and the insurance this shouldn't be an issue.. Take your phone to an authorized dealer and they should transfer everything and give you a new phone.. and since the bootloader is a facory issue I believe all you would have to pay is 10 thats all I had to pay in delaware!
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Your phone is partly fried. It needs to be re-flashed. You can do it with a USB cable and the proper software....Google "bootloader USB" for some help in finding the software. One thing to try, hold down the "*" and "#" keys while powering up the phone, this could possibly help, but I doubt it.
It means that your software for the phone has crashed and may possibly be corrupted. Try removing the battery and SIM (if applicable) while the phone is turned on. Reinstall battery and SIM and power the phone back on. If you still get the same error message, you'll need to visit a repair center to have the phone reflashed.
This means that the phone firmware is corrupt - you can try to reflash it using Motorola software update, but it might not work for a phone stuck in bootloader mode:
My motorola cell phone model ve465 has the following problem that won't clear itself... Screen has motorola logo and bootloader usb init on the screen and won't let me clear screen so phone will work
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