Ok, If soft reset does not work, then you may have to use the Device Manager to recover your player:
If you have not already installed the Device Manager, follow the on screen instructions to install the Device Manager from the installation CD or download the latest version of the Device Manager application from http://www.philips.com/support
Make sure all other applications Windows Media Player or Windows Explorer that access the device are closed or else Device Manager will not recognize the device. Launch the Device Manager at Start->Programs->Philips Device Manager on your PC. Select the REPAIR tab on the dialogue box.
Power off the player. Press and hold the "+" key and then connect it to the PC until you are prompted to release the key.
Select the device name and then click OK and REPAIR.
IMPORTANT: All music & content of your device will be erased once the Player is repaired.
Once the repair is complete a dialogue box will pop up; click OK and unplug the Player from the computer.
The Device Manager will close automatically once the success message is displayed. Close all opened application and then unplug your device.
Once the Player is disconnected from the computer, the display will show "Firmware Upgrading" for a couple of seconds and then start up as usual.
Tip: Update your player's firmware to the latest version to reduce the chance of future hang-ups.
Hope this helps