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I had this same problems; the gigabeat would work fine with the case open but get the white screen when closed. Your ZIF connector is shorting on the hard drive. put a piece of tape on the metal case right by where the connector inserts so as to prevent shorting.See this image for something a bit more clear.Edit: I too initially thought it was an issue with the hard bends required in fitting the zif cable, but after fixing the short, the device worked despite the bends.
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