Ok, flash it back to 2.1 for now. I'll dig deeper.
UPDATE: Ive dug a little deeper (about 5-6 feet!)
Could you try the following please:
When you flashed it originally, did you have the sim card and microSD card inserted? if so try reflashing with neither inserted, report results please Sir.
If that fails try the following: Before you attempt flashing the handset reset it to default by typing *2767*3855# in the dialler screen (handset will display a few messages and reboot). Then, before flashing, remove both the memory card and sim card, format the memory card in your pc and re-insert it into your handset. Turn on your phone normally (no sim card) and let the handset write the files it wants to the memory card. Then reboot into download mode and flash it. Report results please Sir.




