YUN which will not reset the wifi and has boot problems

here is the output of the boot sequnce. the last line is particularly troubling. Suggestions of a possible path forward.....or butter it cause its toast?

U-Boot 1.1.4-gd995931a-dirty (Aug 7 2013 - 16:16:04)

Arduino Yun (ar9331) U-boot

DRAM: 64 MB
Top of RAM usable for U-Boot at: 84000000
Reserving 142k for U-Boot at: 83fdc000
Reserving 192k for malloc() at: 83fac000
Reserving 44 Bytes for Board Info at: 83fabfd4
Reserving 36 Bytes for Global Data at: 83fabfb0
Reserving 128k for boot params() at: 83f8bfb0
Stack Pointer at: 83f8bf98
Now running in RAM - U-Boot at: 83fdc000
Flash Manuf Id 0xef, DeviceId0 0x40, DeviceId1 0x18
flash size 16777216, sector count = 256
Flash: 16 MB
Using default environment

In: serial
Out: serial
Err: serial
Net: ag7240_enet_initialize...
No valid address in Flash. Using fixed address
No valid address in Flash. Using fixed address
: cfg1 0x5 cfg2 0x7114
eth0: 00:03:7f:09:0b:ad
eth0 up
: cfg1 0xf cfg2 0x7214
eth1: 00:03:7f:09:0b:ad
athrs26_reg_init_lan
ATHRS26: resetting s26
ATHRS26: s26 reset done
eth1 up
eth0, eth1
Hit any key to stop autoboot: 4  3  2  1  0

Booting image at 9fea0000 ...

Image Name: MIPS OpenWrt Linux-3.8.3
Created: 2013-08-19 14:23:28 UTC
Image Type: MIPS Linux Kernel Image (lzma compressed)
Data Size: 1170186 Bytes = 1.1 MB
Load Address: 80060000
Entry Point: 80060000
Verifying Checksum at 0x9fea0040 ...OK
Uncompressing Kernel Image ... OK
No initrd

Transferring control to Linux (at address 80060000) ...

Giving linux memsize in bytes, 67108864

Starting kernel ...

[ 0.000000] Linux version 3.8.3 (federico@smilzo) (gcc version 4.6.4 20121210 (prerelease) (Linaro GCC 4.6-2012.12) ) #8 Mon Aug 19 16:22:39 CEST 2013
[ 0.000000] bootconsole [early0] enabled
[ 0.000000] CPU revision is: 00019374 (MIPS 24Kc)
[ 0.000000] SoC: Atheros AR9330 rev 1
[ 0.000000] Clocks: CPU:400.000MHz, DDR:400.000MHz, AHB:200.000MHz, Ref:25.000MHz
[ 0.000000] Determined physical RAM map:
[ 0.000000] memory: 04000000 @ 00000000 (usable)
[ 0.000000] Initrd not found or empty - disabling initrd
[ 0.000000] Zone ranges:
[ 0.000000] Normal [mem 0x00000000-0x03ffffff]
[ 0.000000] Movable zone start for each node
[ 0.000000] Early memory node ranges
[ 0.000000] node 0: [mem 0x00000000-0x03ffffff]
[ 0.000000] Primary instruction cache 64kB, VIPT, 4-way, linesize 32 bytes.
[ 0.000000] Primary data cache 32kB, 4-way, VIPT, cache aliases, linesize 32 bytes
[ 0.000000] Built 1 zonelists in Zone order, mobility grouping on. Total pages: 16256
[ 0.000000] Kernel command line: board=Linino console=ttyATH0,250000 mtdparts=spi0.0:256k(u-boot)ro,64k(u-boot-env)ro,14656k(rootfs),1280k(kernel),64k(nvram),64k(art),15936k@0x50000(firmware) rootfstype=squashfs,jffs2 noinitrd
[ 0.000000] PID hash table entries: 256 (order: -2, 1024 bytes)
[ 0.000000] Dentry cache hash table entries: 8192 (order: 3, 32768 bytes)
[ 0.000000] Inode-cache hash table entries: 4096 (order: 2, 16384 bytes)
[ 0.000000] __ex_table already sorted, skipping sort
[ 0.000000] Writing ErrCtl register=00000000
[ 0.000000] Readback ErrCtl register=00000000
[ 0.000000] Memory: 60900k/65536k available (2565k kernel code, 4636k reserved, 655k data, 232k init, 0k highmem)
[ 0.000000] SLUB: Genslabs=9, HWalign=32, Order=0-3, MinObjects=0, CPUs=1, Nodes=1
[ 0.000000] NR_IRQS:51
[ 0.000000] Calibrating delay loop... 265.42 BogoMIPS (lpj=1327104)
[ 0.080000] pid_max: default: 32768 minimum: 301
[ 0.080000] Mount-cache hash table entries: 512
[ 0.080000] NET: Registered protocol family 16
[ 0.090000] MIPS: machine is Arduino Yun
[ 0.530000] Setting DogStick2 GPIO
[ 0.550000] bio: create slab at 0
[ 0.550000] SCSI subsystem initialized
[ 0.550000] usbcore: registered new interface driver usbfs
[ 0.560000] usbcore: registered new interface driver hub
[ 0.560000] usbcore: registered new device driver usb
[ 0.560000] Switching to clocksource MIPS
[ 0.570000] NET: Registered protocol family 2
[ 0.570000] TCP established hash table entries: 512 (order: 0, 4096 bytes)
[ 0.570000] TCP bind hash table entries: 512 (order: -1, 2048 bytes)
[ 0.570000] TCP: Hash tables configured (established 512 bind 512)
[ 0.570000] TCP: reno registered
[ 0.570000] UDP hash table entries: 256 (order: 0, 4096 bytes)
[ 0.570000] UDP-Lite hash table entries: 256 (order: 0, 4096 bytes)
[ 0.580000] NET: Registered protocol family 1
[ 0.600000] squashfs: version 4.0 (2009/01/31) Phillip Lougher
[ 0.600000] jffs2: version 2.2 (NAND) (SUMMARY) (LZMA) (RTIME) (CMODE_PRIORITY) (c) 2001-2006 Red Hat, Inc.
[ 0.610000] msgmni has been set to 118
[ 0.610000] Block layer SCSI generic (bsg) driver version 0.4 loaded (major 253)
[ 0.610000] io scheduler noop registered
[ 0.610000] io scheduler deadline registered (default)
[ 0.610000] Serial: 8250/16550 driver, 16 ports, IRQ sharing enabled
[ 0.620000] ar933x-uart: ttyATH0 at MMIO 0x18020000 (irq = 11) is a AR933X UART
[ 0.630000] console [ttyATH0] enabled, bootconsole disabled
[ 0.630000] console [ttyATH0] enabled, bootconsole disabled
[ 0.630000] ath79-spi ath79-spi: master is unqueued, this is deprecated
[ 0.640000] m25p80 spi0.0: found w25q128, expected m25p80
[ 0.640000] m25p80 spi0.0: w25q128 (16384 Kbytes)
[ 0.640000] 7 cmdlinepart partitions found on MTD device spi0.0
[ 0.650000] Creating 7 MTD partitions on "spi0.0":
[ 0.650000] 0x000000000000-0x000000040000 : "u-boot"
[ 0.650000] 0x000000040000-0x000000050000 : "u-boot-env"
[ 0.660000] 0x000000050000-0x000000ea0000 : "rootfs"
[ 0.660000] mtd: partition "rootfs" set to be root filesystem
[ 0.660000] mtd: partition "rootfs_data" created automatically, ofs=720000, len=780000
[ 0.660000] 0x000000720000-0x000000ea0000 : "rootfs_data"
[ 0.670000] 0x000000ea0000-0x000000fe0000 : "kernel"
[ 0.670000] 0x000000fe0000-0x000000ff0000 : "nvram"
[ 0.680000] 0x000000ff0000-0x000001000000 : "art"
[ 0.680000] 0x000000050000-0x000000fe0000 : "firmware"
[ 0.700000] libphy: ag71xx_mdio: probed
[ 0.700000] eth0: Atheros AG71xx at 0xba000000, irq 5, mode:GMII
[ 1.250000] eth0: Found an AR7240/AR9330 built-in switch
[ 2.280000] eth1: Atheros AG71xx at 0xb9000000, irq 4, mode:MII
[ 2.830000] ag71xx ag71xx.0 eth1: connected to PHY at ag71xx-mdio.1:04 [uid=004dd041, driver=Generic PHY]
[ 2.830000] ehci_hcd: USB 2.0 'Enhanced' Host Controller (EHCI) Driver
[ 2.830000] ehci-platform: EHCI generic platform driver
[ 2.840000] ehci-platform ehci-platform: EHCI Host Controller
[ 2.840000] ehci-platform ehci-platform: new USB bus registered, assigned bus number 1
[ 2.840000] ehci-platform ehci-platform: irq 3, io mem 0x1b000000
[ 2.870000] ehci-platform ehci-platform: USB 2.0 started, EHCI 1.00
[ 2.870000] usb usb1: New USB device found, idVendor=1d6b, idProduct=0002
[ 2.870000] usb usb1: New USB device strings: Mfr=3, Product=2, SerialNumber=1
[ 2.870000] usb usb1: Product: EHCI Host Controller
[ 2.880000] usb usb1: Manufacturer: Linux 3.8.3 ehci_hcd
[ 2.880000] usb usb1: SerialNumber: ehci-platform
[ 2.880000] hub 1-0:1.0: USB hub found
[ 2.880000] hub 1-0:1.0: 1 port detected
[ 2.890000] Initializing USB Mass Storage driver...
[ 2.890000] usbcore: registered new interface driver usb-storage
[ 2.890000] USB Mass Storage support registered.
[ 2.890000] input: gpio-keys-polled as /devices/platform/gpio-keys-polled/input/input0
[ 2.900000] sdhci: Secure Digital Host Controller Interface driver
[ 2.900000] sdhci: Copyright(c) Pierre Ossman
[ 2.900000] usbcore: registered new interface driver ushc
[ 2.900000] TCP: cubic registered
[ 2.900000] NET: Registered protocol family 17
[ 2.910000] Bridge firewalling registered
[ 2.910000] 8021q: 802.1Q VLAN Support v1.8
[ 2.920000] VFS: Mounted root (squashfs filesystem) readonly on device 31:2.
[ 2.920000] Freeing unused kernel memory: 232k freed
[ 3.220000] usb 1-1: new high-speed USB device number 2 using ehci-platform
[ 3.260000] SQUASHFS error: xz_dec_run error, data probably corrupt
[ 3.270000] SQUASHFS error: squashfs_read_data failed to read block 0x60872
[ 3.270000] SQUASHFS error: Unable to read fragment cache entry [60872]
[ 3.270000] SQUASHFS error: Unable to read page, block 60872, size 12370
[ 3.280000] SQUASHFS error: Unable to read fragment cache entry [60872]
[ 3.280000] SQUASHFS error: Unable to read page, block 60872, size 12370
[ 3.280000] SQUASHFS error: Unable to read fragment cache entry [60872]
[ 3.280000] SQUASHFS error: Unable to read page, block 60872, size 12370
[ 3.290000] SQUASHFS error: Unable to read fragment cache entry [60872]
[ 3.290000] SQUASHFS error: Unable to read page, block 60872, size 12370
[ 3.290000] SQUASHFS error: Unable to read fragment cache entry [60872]
[ 3.300000] SQUASHFS error: Unable to read page, block 60872, size 12370
[ 3.320000] Kernel panic - not syncing: No init found. Try passing init= option to kernel. See Linux Documentation/init.txt for guidance.

It could be a hardware issue but it is more likely just a corrupt flash partition. The seller should replace under warranty but if you want to try and fix it yourself this page has instructions http://arduino.cc/en/Tutorial/YunUBootReflash. Make sure you read the warning in red text at the top of the page.

There is no need to flash uboot and it is the most dangerous step so just reflash the kernel if it still doesn't work reflash the rootfs.