Frozen Welcome screen/ device not recognized in My computer

Here is the issue i am having:

When i turn on my Sansaclip, the SanDisk Sansa logo appears, but nothing else. it never advances past this screen. I tried to reboot the device, but that did not work. 

When i plug it into my computer, it says the USB device has malfunctioned.

Is it gone forever??? thanks for any advice.

I also have same issue and have tried powering off/on, attempted the firmware update but because Windows doesn’t recognize the USB, was unable to complete the update.  Have also tried moving to the Hold position, hold down the center button and plug in the USB and Windows XP sp2 still not recognizing it.