sreejith51, if the firmware tadad1 gave you doesn't seem to work, try the firmwares from s1mp3.org if you haven't already.
There's a bunch of 3.2.16 firmwares...maybe you can find one that works.
Here's the link:
http://s1mp3.org/en/downloads_fw.php...140873da81bd70
It would be easier if you could obtain your board id and try to match it with the firmwares on the site but if you don't wanna open up your player, just choose various firmwares and see if you can at least get it out of recover state and fix your memory issue.
Let us know how it goes.