The boot log you posted indicates that it has no kernel in flash memory, or that the kernel has become corrupted. There should be a lot more stuff on the screen after that. Try applying a Hijack kernel and see if that works. If it does, check to see if the hard disks are working OK. If they are, apply version 2.0 final to the player.

I will add a note to that FAQ entry about what to do when all you get is a flashing LED.