Can this be repaired and how? Phone won't start or connect using C button.

Code:
Action journal
10:23:28   Flash
10:23:28   Allows to change languages supported by the phone and upgrade its firmware.
10:23:28   Operating system: Microsoft Windows 7 Ultimate Edition Service Pack 1 (build 7601), 32-bit
10:23:28   Application version: 0.28.4254
10:23:28 . The action name is 'Flash'
10:23:28   Selected phone type: W580
10:23:28   Selected connection method: USB ROM
10:23:28 i Instructions
10:23:28 i 1. Make sure the phone battery is charged to at least 50%.
10:23:28 i 2. Switch off the phone!
10:23:28 i 3. Remove the phone battery and wait at least 5 seconds, then insert the battery back to the phone!
10:23:28 i 4. Press and hold buttons 2 and 5, then connect the cable to the phone!
10:23:28 . The action started waiting for the user
10:23:34 . The action finished waiting for the user
10:23:34   Connecting via Generic EMP USB Flash Device (USB1)...
10:23:34   Device driver version: 2.2.0.5
10:23:35   Entering baseband CPU service mode...
10:23:35   Detected chipset: DB2020 '9900
10:23:35   Boot mode: ROM
10:23:35   Sending loader...
10:23:35   Waiting for loader response...
10:23:35   Flash chip manufacturer: Intel®
10:23:35   Flash chip ID: 897E
10:23:35   IMEI: 01162900002692
10:23:35   OTP CID: 51
10:23:35   OTP area status: Locked
10:23:35   Product type: Retail
10:23:35   Effective CID: 52
10:23:35   Effective color: Red
10:23:35 i Waiting for connection to the server...
10:23:44   Receiving news...
10:23:45 i News
10:23:45 i From 1st of December you can unlock Android based SE phones with 1 Year Omnius license for only 0.7 Supreme credits
10:23:53   Sending loader...
10:23:53   Waiting for loader response...
10:23:54   Memory patch result: 0
10:23:54   Flash chip lot number: 28065610
10:23:54   Flash chip wafer number: 609
10:23:54   Sending loader...
10:23:54   Waiting for loader response...
10:23:54 i Cross-CID flashing is disabled.
10:23:54   Waiting for flash files to load...
10:23:54   Writing file W580_R8BE001_MAIN_GENERIC_LA_RED52.mbn...
10:27:46   Writing file W580_R8BE001_FS_AMERICA_1_RED52.fbn...
10:29:34   Sending loader...
10:29:35   Waiting for loader response...
10:29:36   Initializing GDFS access...
10:30:18   Starting file system...
10:33:23 e Error: Failed to start filesystem
10:33:23 e Failed!
10:33:23 . The action entered shutdown phase
10:33:23 . The action reported failure
Error code
# 239A481FECB4C3D3
Error details
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5F 2F DE 18 D7 FF D7 34 FB F4 CC DD D1 EA 91 29 
23 4E 9B F8 39 AC 57 F3 4B 8A B3 8C 78 5D 61 E8 
73 D8 65 C9 D9 3E 37 E2 9B F5 1D B1 CF E4 B7 00 
6D D3 FB E8 77 58 34 1C 41 AD 43 61 E1 66 01 0A 
ED 51 D5 09 39 09 E2 5D 6B 3B BD B0 6F 20 D6 90 
98 A9 0B 25 17 8E 39 F6 8C 32 88 FB 41 BA A1 D8 
AE 7D 75 48 C9 1F 09 2C 25 B0 EE 42 15 FD 21 D5 
03 F2 BB A2 4A F4 65 9A 85 37 D3 E0 5F D0 ED 03 
23 DF 45 89 F9 DE A9 BE 96 39 78 07 01 77 11 54 
5D D8 64 AA E0 DA D7 9D CB F6 CD 0E 01 F5 E1 BD 
0D 55 C0 C1 09 A3 49 6C 1B 8C BA 25 2A 48 1F 95 
43 B2 85 62 01 75 06 F9 3B 46 6D 20 9F E8 7F 84 
93 26 FA 78 F7 5F 
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