That's what it suppose to do , wait, then you unplug the power and press power while holding home key.

Try a few times. Last time I flashed, it stopped in about 25% then in 70%, only on the third time I tried it worked. So this board is unpredictable. And take the battery out for a few hours (5-6), that also has an effect on power up.
I'm just a noob I don't know anything, but when I had a problem with power up, I put it in a bag and the battery in the same bag, ten minutes in the freezer. Then I inserted the battery while evrything was still in the bag, to avoid condensation and it powered up.

You should also try flashing on windows (that was painfull to write)

Read this :
http://talk.maemo.org/showpost.php?p=121768&postcount=7

I don't know what recycle means, but try unpluging and pluging.
BTW the charging icon when pluging the power disappeard to me many times, it's meaningless.
And take the card out. And don't use a usb hub. And removing the "-S usb" from your command. And check your usb cable with a different device.