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Help Failed hard reset?

I have been experiencing problems with my HTC Desire (on O2 network) for a few weeks but today it crashed when I opened the Market app. Upon trying to restart the Desire, it would turn on, briefly vibrate, then show the O2 Welcome page. However, this is as far as it goes. It will not boot any further.

I then googled the fault and was directed to HTC Support page:HTC Desire - Restarting or factory resetting your phone

After reading the options I decided to attempt the final option of Factory (hard) reset.

I have followed the instructions to the letter, but upon startup, it will still not get past the O2 Welcome page,

The Desire was obtained in Aug 10 as a free upgrade (and now I wish I got an iPhone!). I didn't bother with O2 insurance as I felt it too expensive at the time, but it is well within 12 month warranty so I will return it if necessary.

Any help/tips/advice would be appreciated!:eek:
Basically, I left my house one day with the phone working perfectly normal, when it froze and I took the battery out. After that I can turn it on, it will vibrate and the 02 screen will appear but will load no further and no matter how many times I hard reset, clear storage or fast boot it will keep doing exactly the same thing and not load..:(
I took it to a phone shop and they said to try and update the software, but I have no clue about how I can do this if my phone won't actually turn on?
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