Hi,
Did you get help? I think I'm in the same position, and dunno what to do at the moment. I can still get in to recovery mode. Did you try wiping data from there?
SOLUTION FOR NO-BOOT MOTOROLA MILESTONES
Is your phone in constant reboot, or never gets past the Android boot animation?
A quick fix in the steps below.
1. First of all, take out your SDCard and put in the latest http://alldroid.org/viewtopic.php?f=259&t=1617. In the zipfile you see there are 2 files, put both of these in your root (just open up your card and paste the files).
2. Download the http://developer.android.com/sdk/index.html, install and apply all the updates needed.
3. Download a nandroid backup (if you already don't have one) from http://www.alldroid.org/viewtopic.php?f=318&t=1808. Put this on your SD card aswell. I had to put it in nandroid/backup/console=ttyS2,115200n8/[BACKUPFOLDER HERE].
4. Open up command prompt (type cmd @ run or search, depending if you're using WinXP or Vista/Win7). Go to your location where you installed the android SDK, e.g. "cd c:\program files\AndroidSDK\". From here, type adb shell.
5. After typing ADB shell you will see a # in front of everything you write. This means you have root access to your phone, congrats!
write
Code:
The nandroid-mobile.sh --restore
Just tap enter once more to see the latest backup, and enter again to choose to recover with that backup-file. You can also be more specific and write which one you want to use.
Let the update process finish, and your phone will be usable again! I am happy like **** right now.