I received this error again recently when the battery went dead after using the GPS and Google Navigation. I tried charging with the usb cord but it would cut on, start to boot, then cut off - the red light would start blinking again.

To fix the issue I plugged to phone into a Blackberry Storm wall charger which provides up to .7 amp of power instead of the .5 amps that the provided USB charger puts out. With the BB charger the phone booted normally and is now charging.

I think what is happening is the stock charger does not have enough juice to charge the phone while its turned on with a dead battery. I wish the phone would stay off while charging under these circumstances so all of the power goes to charging the battery. Then when its charged to >10% or something it would power it self on.

See if you can find a micro USB wall charger that has an output of at least 700 mA and give it a try/