Same thing here. I upddated to Pr1.2 OTA and microB doesn't even start. The bookmarks I had in the desktop don't work either. Firefox and Opera seem to be working fine, however, but with all the limitations you can expect.

Reflashing doesn't seem like a bad idea, but I'm not sure how to go about it. Seems like there is another thread dealing with a similar problem here:

http://talk.maemo.org/showthread.php?t=53897

Has anyone found this same problem and fixed it?

Any help would be very welcome indeed