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Help Galaxy S2: Correct Password in Recovery Mode Boot Loop

I have a standard unrooted Galaxy S2 from AT&T. It randomly entered boot loop flashing the samsung logo screen on and off every few seconds.

After reading these forums I first went into recovery mode and cleared the cache partition. This did not work. I then tried the data wipe/factory reset and it asked for my pin code.

I entered the correct pin code and the phone goes back to the same boot loop.

Now when I enter recovery it immediately goes back to enter pin code, and after entering returns to boot loop.

I know the pin is correct since when I enter the wrong pin it tells me so.

I haven't seen another post with this problem. I have never rooted or done anything to the phone.

Thanks for any advice.
 

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