The readme is from the firmware updater for your player. If you install the software onto your computer, you should be able to reflash your player and fix your problem. To install it, doubleclick on the setup.exe file, which should be in the same folder as you found the readme. After the installation is complete, you'll find the updater program listed in your programs list, under the START button. Before you use the updater, note that it will reformat the player, deleting all the songs you have on it, so back them up before proceeding. When you're ready to reflash, start the updater, and plug the MP3 player into the USB port (easier if you use an extension cable). You should see the program find your device. To continue with the reflash, click the START button. Do not unplug the player until it finishes.
If it doesn't find the device (ie, the START button stays greyed out), remove the battery from it, and hold down the PLAY button while you plug it into the USB port. Don't let the PLAY button go until you see the program start to find the MP3 player. It takes as long as 10 seconds or so.
Copy your music back on and it should be good to go again.
flash, November 2007