I believe I'm having the same problem, it boots up- runs, lets me record to the last setting (DV over 1394) but the menu button does nothing(except when holding the display button, though in spite seeing the menu, the navigation doesn't work) and I also can't switch modes do other things.
Mode button, thumbnail button- prettymuch every button on the top and back of the thing is non-functional!
It's not just the buttons, I've tried navigation with the remote... And I've tried the reset button on the side too...
It's something really bad. Any suggestions?
I don't want to be stuck with external mini-DV forever!