Ok so I have actually managed to install a different rom.
I installed cleanrom from here http://www.scottsroms.com/downloads.php?do=cat&id=99
at first it didnt work. then I tried the boot trick of replacing the boot.img with the functional one.
And it worked!
But the phone is still doing all the same stuff it did on the other (stock) rom. (rebooting every 5 seconds, no keyboard, no connection to anything, no sound sometimes, cannot close the screen or it auto reboots, small grey box with "error" written inside it appears when I enter system settings, widgets never work, etc.)
I find it strange that the exact same problems have carried over.
Any ideas now?
I have to say I reall appreciate your help so far andro ninja.
Im having a hard time believing how complicated this is getting, this is by far the worst android experience I have ever had.
Also if anyone knows of a place I can just send this phone to be repaired please let me know. At this point, unless someone has anything else to try, i consider the thing a 350$ paperweight which is actually extremely depressing considering how little money I actually make and the fact that I now have no phone.