My suspicion is that either there is a software problem which is preventing your device from booting correctly, or more likely that there is a hardware fault, perhaps a stuck soft reset button or something else, which is preventing a successful boot. The 'plug in USB' screen message you are seeing is intended for use when doing a ROM update or upgrade. If you had a ROM image file and an installer on your PC and wished to install a new OS on the device, then that is when you would use that button combination and connect by USB.
I suggest at first trying a soft reset, then a hard reset. Failing those, try removing the battery for a day or so. If it still does not work, perhaps you will need to get it to a repair shop. In North America it is recommended to use pocketpctechs.com as they are expert in recovering such problems. In other countries I do not know of a resource.
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