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I recently ran into this, and it was utter panic as it happened at the worst time. Better yet, as others have reported, VZW won't help you at the store and you have to get the phone replaced via mail. I'm a long time POS user and here's what I did along with some things I've found.
I couldn't break out of the endless loop, so I hard reset the 700P. I use BackupBuddy VFS to backup my Treo every morning, and I used it to restore the 700P from the memory card. For me, BackupBuddy VFS has been great, both on my Palm T5 and the 700P, and the restore worked fine. After you restore, you must soft rest your 700P. You should be okay after this. It takes a few minutes, and is annoying, but it's worked for me. So far the loop problem has happened 3 times.
Also, opinions will vary, but every time I've had a major Palm problem with loops or resets I've been able to trace it back to DataViz Docs-To-Go. Don't get me wrong- I love Docs-2-Go, and use 2 other DataViz products and like them very much. But I've found that removing Docs-To-Go has almost always cured my problems without having to restore or rebuilt my POS device. In Docs-2-Go you simply go to Tools | Reinstall Handhelp Apps and you're back in luck.
With my last endless loop, rather than delete Docs-2-Go and waste time, I installed the DataViz Tech Tool utility (downloadable from their site). Under the Options | Advanced area you can elect to Delete Preferences and Delete Temp Database. By deleting these two items I was able to clear up my endless loop issue (which came back even after a complete memory card restore), which leads me to believe one of these items was corrupted somehow.
Anyway, backup and restore seems to help, and you can try the DataViz Tech Tool. Hope this helps someone.
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