I have the same problem... I have tried reloading the bootloader (with E200tool) and the firmware. However, after going into recovery mode and copying the two files over, instead of displaying messages about loading the new bootloader or firmware the screen just goes blank. Occasionally, it goes snowy instead.
I don't know what to do either. I have also tried reloading the i2c image with e200tool but get the following error (the ring blinks repeatedly after the load, causing the timeout):
C:\Sansa\New Folder>e200tool i2cprogram i2c.bin
e200tool v0.2.3-alpha (c) by MrH 2006, 2007
Programming i2c rom (address=87) range 0x0000-0x2000 from 'i2c.bin'
Searching for device 6666:e200 ... found!
Uploading at 0x2000
Uploading done!
Programming, please wait...
Programming failed (-116, Connection timed out)
*DANGER*, player might not be bootable now! Please retry!
Fortunately, this doesn't affect the ability to go into recovery mode... I have been using e200tool from DOS after successfully loading the libusb driver. Perhaps I may try using Linux...