I'm having the same error with a Blackberry 7520 (prefetch exception, reset). I tried the application loader and plugged the 7520 into the USB port. The application loader couldn't connect to the blackberry, though it detected the USB connection to it.
I haven't tried what GingerTalkWireless has tried yet.. the wireless provider said they had to send it back to RIM. :-/
I wish I knew about this earlier.