You dont need to remove the battery to do a hard reset. Just press and hold the power button on the top, and then use the stylus to press the 'soft reset' button on the bottem. That will hard reset the device. It should then power up and re-install its software.
Restoring a backup from an old device aint a good idea (same model, and operator required for sensible results). The backup will contain the windows dir, registry, as well as the operator unique progs that they put on the device to personalize it to them. Result will likely be not being able to boot, or device working incorrectly once started.
If the hard reset does not work, then you'll have to return it for a replacement.
Best bet will be to re-install all the progs from your own device and resync your email, contacts, blah from a PC.