HELP . . . Encryption Unsucessful . . . Zen Ultrafone 701hd

hello,
please help my phone is dead. i just saw my phone showing error "Encryption Unsucessfull". I tried RESET as shown below. but It lead me to Android System recovery <3e>. I tried wipe cache, Facorty reset, but nothnig works. I showing mount /data error.
I dont know what happend to my phone, It was unrooted and new.