Thanks, I followed the instructions and when the phone rebooted is comes up with
update media, please waitE:Can't mount /dav/block/st110
(Invalid arguement)
E:Copy....copy_dbdate_media:Can't mount DBDATA your storage not prepared yet, please use UI menu for format and reboot actions.copy default media content failed.I then have to press the home key to manually reboot the phone, then phone then reboots and brings up the wake up screens but after the second screen (the one with the large S) the screen goes blank and the phone vibrates every so often.
I've also tried flashing I9000XWJS3 which comes up with the same message on reboot but then comes up so the phone works but android market doesn't

that's pretty much what I had. I ran the factory reset from the screen with the blue/red/yellow writing if that makes sense. did you get your phone working - if so how?
seemed to work.