Connect it via USB to your PC/laptop. It'll connect to the Leapster website and appear to update firmware. Once it is finished, it will let you know to disconnect. After that it should work. I had the same problem and did this, and now it's working fine.
Fixed ours by removing battery pack and 5 screws on the back. Removed the back cover and detached the SD card slot. The spring in the card slot was dislocated and making contact with the surrounding metal housing. Placed spring back into position.
Is now working.
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