It is indicating that there is a hard drive fault. Here is another users suggested method to clear the fault.
Following some extensive use I switched it on one day to find that it hung on the Archos home screen and kept going in a loop. Luckily I could see the red HDD light flickering so knew that the Archos was trying to do something and that the HDD was recoverable. When I entered into the recovery mode I found that I had an recovery code (101) which indicates a HDD fault.
I used the following steps to recover the HDD:-
1. Connect the archos to the PC using the USB cable (the unit will start but will need to be shut down again by pressing the power button)
2. Press the power button and the 'lock' button together for a few seconds and you should get a basic recovery screen
3. Scroll down to repair disk and select
4. Click on done and wait for a few seconds and you will see the archos as a drive in 'My Computer' (Note that this does take a few minutes)
5. You now need to back up your data, movies, music, widgets etc as the next step is to format the Archos HDD which will wipe it all.
6. Disconnect the Archos, turn it off and then turn it back on again by pressing the power and 'lock' buttons together.
7. Scroll down to format disk and select. The Archos will now delete all files on the HDD and you will get a message asking to connect to a PC and install the update file. This is the firmware file that can be obtained from the Archos website. You'll also notice that the recovery code has changed from 101 to 108
8. Connect the Archos to the PC, wait for a few seconds and you will see the archos as a drive in 'My Computer' again.
9. Drag the firmware update file from your PC where you've downloaded it to directly on to the root drive
10. Click 'done' on the Archos and it will begin to update the operating system.
11. Once this is complete then there should be an update successful message, select done and the archos should restart giving you the nice bubble screen and asking if you want to enable USB.
12. Note that the Archos is now in a 'factory built' condition so you'll need to adjust settings etc according to your preferences.
13. You can now start the long process of transferring your files back to the Archos.
SOURCE: recovery code 101
A) Download the firmware from Archos and save it to your desktop (Make sure the file name on the desktop hasn't changed from the original download file name)
B) The Archos 5 or 7:
1- Plug the unit to you computer via the USB cable.
2- The unit should start automatically and open the following page:
3- From the recovery console (the screen that asks for repair or format etc…)
4- Select "Repair" by scrolling up and down with the volume control on the right of the unit (Do not press "Format" at any time)
5- Now that you are on "Repair" press the on and off button, shortly to validate your selection
6- The unit will go to "Plug the unit etc…" but it is already plugged from point 1 - DO NOT press anything anymore on the Archos
8- Wait until Pc should recognizes your Archos (around seconds)
C) Computer
1- From your computer select the firmware file you downloaded from the net and put it in your Archos (in the root folder, nowhere else, where it has the folders, music, videos, pictures etc… as a file)
D) On the Archos 5 or 7
1- Select "Ok" on the Archos (on & off button) shortly to select and confirm the file is now on the Archos
2- you are done! The Archos 5 or 7 should now read through the file you have transferred and repair the system
3- DO NOT DISCONNECT the USB cable until the process is finished
4- when done safely disconnect (as you usually do, for Mac trash the letter of the Archos to the bin or for PC's: right click the green icon bottom right of the screen for xp & vista)
5- Press on/off button to reboot
Your unit should restart with a fresh repaired, updated system like day one.
Good luck!
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