kote1010 thank you dude for posting that work around. I called my droid, answered the call, clicked on menu, create memo and voila! I was on my home screen. But when I tried to remove pattern it kept asking me about previous pattern.. if only I remembered it, I wouldn't be in this situation.. After exhaustively trying to identify my pattern, I unmounted following your instructions. I got tired by that time and I restarted the phone, called it again and went to the home screen by doing the create memo.. The most annoying part is it would not even let me do a factory reset without providing the pattern.. I don't remember exactly what I did, but I clicked various options looks like I confused it enough to let me in without a pattern... This is a serious issue which needs to be resolved for captivate. I wish at&t pushes froyo, it drives me crazy because they don't upgrade OS... But any ways kudos dude...
One more thing, I was able to back up my videos and photos using adb of droid SDK's pull command, so I had the freedom of clicking randomly... That makes me realize, data is not secure even after locking using a pattern, so why bother just turn it off.. phew! I m never going to do it again, learnt it the hard way..