Looks like you might need to do a factory reset.
Before you do. Go to People -> Menu -> Import/Export -> Export to SD Card to back up your contacts. (If you use gmail for your contacts, there is no need for this) Then connect to your computer as a disk drive and 3 drives will appear. One will be for the SD card, one will be for the internal storage and one will be VZ crapware CDRom. Do not install the crapware from the virtual CDRom. Look through the other 2 drives and copy off pictures and any other info you can get to your computer.
Then do a factory reset.
If you can get to it - go to Menu -> Settings -> SD & phone storage -> Factory data reset
It will erase all data from your phone so be sure you have contacts, and data backed up.
If you can't do that then shut the phone down, power on while holding the power and down volume buttons. This will take you to HBOOT. Let it do its thing and you will see a phone with a red triangle and a !. Then press vol down, power and the optical button at the same time. (if that does not work hit the up volume button instead)
This will bring you to a menu with options of Reboot, Apply sd card update.zip, Wipe Data/factory reset and wipe cache partition.
Use the Volume down key to get to wipe data/factory reset then hit the power button. This will wipe the system to factory fresh (you will not lose your OTA updates but you will lose apps and data).
When it's done select reboot and hit the power button. You will have to re-login to your gmail account and re-set up your phone, but the data on your SD card will be fine and you can reload your contacts from the backup or gmail will do it automatically. Any apps you purchased will be available in the market under my apps. Any free apps will have to be reloaded from your memory.
Good luck – hope this helps. Post back if you have any more questions.