THE MAJOR RESET OPTIONS DO NOT WORK IF THIS IS OCCURING BECAUSE YOU CANNOT ACCESS ANY OPTIONS ON YOUR HOME SCREEN!!! (i.e. Applications > Settings, etc.)
My phone is stuck on "Downloading... Do not turn off Target!!!" and whenever i restart, i encounter the same problem and when i repeat the action, the same thing happens. There HAS to be another way to reset this phone. I JUST got it recently. It should not be malfunctioning already.