First start off with the battery out of the phone and the usb cable unplugged. Next open the Desktop Manager, then go into Application Loader. When you get to the part where it asks for the connection type just plug in the usb cable (still leaving the battery out). If the connection changes to usb or usb, hit Next. Keep going through the wizard till you're on the last step, before you hit Install. Now put the battery in and see if the loading operation completes.
App Error 523 usually happens after loading incompatible 3rd
party software. Did you load anything
lately? You should be able to connect to
the device while it's rebooting (spinning hourglass) with application loader
and remove the offending 3rd party application.
Good Luck, and do rate the solution if got help
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