I was ready to throw this thing out the window. This worked for me:
1) Launched blackberry desktop software
2) Plugged in blackberry without battery
3) Chose to Update/Repair
4) Had to install some desktop update, answer yes to security questions, wait, wait, install complete
5) Finall chose Update/Repair and it said it would clear my blackberry, ok
6) Downloaded updates, it kept failing at module 305 or similar
7) Decided to start the whole process on another computer, just in case
8) Downloads all modules, now it hangs over and over at Connecting to JVM
9) Disconnected blackberry, reconnected, tried to Retry (nothing)
10) Disconnected blackberry, put battery in, tried to boot and it went to white 507 screen
11) Connected back to PC (with battery and at 507 screen), pressed retry again, MAGICALLY!!!! it connected and started installing..
Hope this helps someone. Step 12 would have been to throw device onto concrete driveway.
