I found the solution! I used titan_exitbl.exe to get out of the bootloader. But first I had to use the taskmgr to find a wmdc background process (mobsync?) that kept the usb locked up (even though the usb connection setting was turned off in the wmdc settings).
Next up... custom rom
Good for you!!!
Hey -- if you are going to use No2Chem or DCD ROMs -- their last builds (5041, 2.2) have some issues. Just beware.
Have fun!