The reset button didn't work for me. I had to dissemble it enough so that I could detach the battery clip on the underside of the board and then plug it back in. I didn't have tot desolder the wires or anything - just unscrew the four screws around the edges of the boar. This was enough to reset the device, however, I found it didn't work right away as it would only power on the next day. When dissasembling make sure you DON'T unscrew the two screws in the centre of the board underneath the screen! These hold attach the camera to the board. Although you can take the camera off, it's a bit of a pain to get it to reseat into the board. It has four little feet, one on each corner, that have to fit into holes in the board. If it's not reseated it may still work but the video will be out of focus ... Trust me! After three tries I got it reseated and back together and it now works fine and is on focus.
Same thing happened to me. I'm guessing you mistakenly unscrewed the two screws in the center of the board underneath screen when you were taking the board off. Those screws attach the camera to the board and the camera itself is aligned by four little "feet" on each corner which go into corresponding holes in the board. If the camera isn't seated in the holes just right the image will be blurry. Once I noticed my camera wasn't seated on the board correctly - and I'm talking about only a millimeter or less on one corner - I just unscrewed the camera, realigned, screwed it back in and everything was clear again. Hope that helps you (or someone)