New Lumia 520 won't even Start!!!!

Hi All,
My roommate just received a Nokia Lumia 520 which he ordered online a couple of days ago.
The thing is, the phone won't even boot up. The Nokia logo appears, stays, disappears for a few seconds and then gets back on again. 
This has been going on for about 2.5 hours, which seems excessively long. We have tried the reset key-combo (Vol down + Lock), but I don't think there is anything to reset in this phone. My laptop was unable to install the driver for the device, reporting that the device was disconneted in between - my guess is its turning on and off again and again. 
He called up the Nokia Care Hotline,and they said that the phone may take about 30-40 minutes to boot up the first time, but I think he was over-estimating, considering it took nowhere near as long for my Lumia 510 to boot up the first time. 
Tough luck for the guy, but do you guys think there is something we can try to do for ourselves or do we have to get a replacement or something?
Looking forward to your responses on this post,
Thanks!

OK... final bit of info for Paul and Rayhipkiss.
While we are certain that this phone has a firmware defect, the Combo that Ray suggested is using an extra key. The actual key combo for restart the phone is Volume Down + Power.
In order to reset the phone, which I did try on this particular one, you need to bring it into Reset mode. This is done using the Volume Down key on the rocker. When successful, you see an exclamation mark. Now, you press the following keys in the mentioned sequence:
Vol Up + Vol Down + Power Key + Vol Down.  
As the phone resets (Phone purges to Factory settings), two gears appear on the screen, rotating. 
When done, the phone should have reset itself to normal. Unfortunately for this phone, SN=AFU.

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