For some reason Korg has left out the procedure for re-initialisation if for some reason the whole thing acts crazy (like mine) and normal restore is impossible (like mine), and even after HD-format, the demon is still inside the PAX (like mine).

The TOTAL RESTORE PROCEDURE is as follows...and do this ONLY when all else fails:

With power off, insert disk 1 of the OS (a total of three disks)
Turn on the power, and when it asks to load OS from disk; Yes or No, press INTRO 1.
After completion of all three disks, power off and on again.

Now all should be normal (like mine).
It also fixed some of the bugs that was delivered along with the PAX.

Wings.