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I just updated my HTC Desire today to the newest firmware. However, on booting up the phone I get this message saying:

The application HTC Sense (process has stopped unexpectedly.
Please try again.
                                 Force Close

When you force close it pops up again in <1sec and keeps looping like this. Sometimes you can pull down the notification bar and open a text or email, but and produce similar error messages.

I have googled for some answers, but the search and menu buttons do not work, I do not have an alternate window manager and cannot install anything using adb (permission is denied). I tried many hard resets and factory resets but to no avail. Any help is greatly appreciated.

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@Callium this was an official update? if so were you already on a custom rom? – Daniel Mar 7 '11 at 23:53
@Dan: It was an official HTC update on an unrooted phone to 2.29.405.1. It went wrong and damaged some library that all HTC apps depending on, I think. – Callum Rogers Mar 8 '11 at 18:07
You should add that information as an answer and "accept" it. – Al E. Mar 8 '11 at 20:15

OP fixed the issue with the following solution:

Edit: I fixed it by following the instructions from TheUnlockr - How To: Unroot the HTC Desire and flashing this ROM [Direct Link].

Community wiki under "best-practices" defined by this meta answer.

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