I came across a russian site [link|http://kindle.zzweb.ru/paperwhite/repair/|http://kindle.zzweb.ru/paperwhite/repair/|new_window=true]. Basicly it sates this:
# Connect the Kindle Paperwhite to a computer USB-cable.
# Create an empty file in the root directory DO_FACTORY_RESTORE.
# Safely disconnect the reader from your computer.
# Reboot your device by holding the power button.
I did this and my kindle paperwhite did a factory reset and I was able to use it again. I had previously tried to format the drive and place a firmware update on the drive so I do not know if this will remove your books. Please try and back up your books if you can before you do this.
Hope this helps others.