The solution is correct. I emailed [email protected]
and received an email the next day with a firmware patch that reformatted my player.
Just an FYI, this did NOT work under Vista and since I had an XP media center laptop sitting next to me I didn't play with it. On the XP system it worked flawlessly. I ended up with a fully functional MP3 player again, nothing in the folder at all and it only took a minute.
Send them an email and I would expect you'd get a response within 1-2 business days. As mentioned, my response was within 18 hours.