Now there are two of us. I have exactly the same issue.
Tab was working fine (stock XXLB3+root from XDA), suddenly reset, 1st static logo appeared, then 2nd Samsung animeted logo, tab reseted again during 2nd logo, and now only 1st static logo shows (no loop, just hung). Going to recovery mode resets on "Copying common apks", so I cannot do anything. Download mode is working, so I tried CWM rec. & wipes: data, cache, dalvik. Tried reflashing stock LB3 (P6810) as well. No luck. @#$@$ I did nothing serious to the tab for at least 3 weeks.
Now I'm waiting for battery death.
Guys, the only fix to the problem where you tried to recover to factory default and stuck at "updating application" @ recovery is battery death. Other than that, then you would need to bring it to the nearest samsung service centre for them to flash a firmware which can do a complete wipe.
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