I just got mine yesterday and I'm having exactly the same problem.
It worked fine, and re-booted out of the box when I unplugged/plugged power back in.
I did these things - after which I noticed rebooting via unplug/plug power resulted in the
solid green, solid blue, dim red and bricked condition:
1. I flashed the 2.3 firmware. Everything came online OK.
2. A few minutes later I followed the factory reset procedure.
note: after setting password and wifi settings on the web UI, it re-boots. It doesn't advise to reset the DIP switches first.....)
Consequently, it goes back into the factory reset cycle after that re-boot.
The next time thru I reset the DIP switches (while it was powered on).
It booted and I was able to login.
After a few hours playing with it, I unplugged/plugged the power adapter to re-boot it (as I had changed the target log for Karma to /sd/)
solid green, solid blue, dim red and bricked condition.
I find it hard to believe it's a power adapter problem - as I am able to go back thru the factory reset and it comes back.
Also, hard to believe a shitty SD card, as the card operates fine in my ubuntu notebook.
I suspect a crappy 2.3 firmware release.