Here's what I did:
1) Unplug all connections including the power supply.
2) Remember that the dreamlink boots first with red and green light blinking first at the same time, then lights goes black and then the green light comes on alone and it powers up - that's the normal cycle. In this case, I only got the green light first while booting up and then it goes off and the green light returns, it goes off again... in a cycle.
3) Keep the switch turned on at the back, but keep the power supply unplugged along with all other cables. Insert the power supply and when the green light appears and immediately before the boot mode shuts off, remove the power supply. Do this 2-3 times, until you see the red and green light together coming at the same time. This time, it will turn on. Do not do turn power off right now, as it will revert to that power cycling state.
4) First, install the factory file using USB drive. Then, do a factory reset using remote. Then install the new firmware and do a factory reset again. Now, if you power off, it should not cycle again.
5) The problem still wasn't fixed completely though. I still had an ethernet not connected message showing, and no matter how many times I rebooted, the issue was still there. I changed from the static IP that I had before to DHCP and I hit the red button and it worked again. I guess, if you had DHCP, changing it to static and hitting the red button will take it. You can then change it back to static or DHCP and save it again.
That's it, it was fixed.
The above instructions were provided by GMan.
