Hit the search key and a menu should popup. If I recall the reboot item is the first item and should be highlighted. You can move the cursor using the volume up and down keys.
Press the menu key (should be ok right above it) when you highlight reboot system and see if it will reboot successfully.
Not at all. This just means that you booted into the recovery. All you have to do is press the search button to open the menu. Use the volume rocker to select reboot, and press the camera to select.