You can reset your Huawei Mercury M886 to restore the default factory setting by following below instructions:
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Lets go ahead and reset the phone manually:
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Thats the only way to reset the phone. If thats not working, then your only option is to have the phone refurbished/reflashed.
I wish there was more we could do, I pride myself on being able to resolve any issue that is brought to me by customers here as my 100%^ positive rating will attest to, but in your specific situation if you are able to boot into Recovery as I outlined and you complete the reset... if it doesnt reset, then your phones firmware is corrupt.