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Try clearing the error by pressing and holding the power button for 30 seconds. If it comes back up, contact Kindle Warranty Support at(###) ###-#### They may offer a discount on a new Kindle, which may be cheaper than repairing yours.
Amazon saves all your purchases on their server so there aren't any worries about losing data. Just make sure when you get your new one to register it with the same Amazon.com email address and password.
In the mean time you can read your books on other devices using these free applications:
Kindle for iPad, iPhone, iPod Touch
Kindle for PC
Kindle for Mac
Kindle for Blackberry
Kindle for Android
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