I have the exact same issue. My dad gave me his old HP Tablet so I did a hard reset and now after I select the language an try to connect to the internet I get the same error and cannot get any further.
Unfortunately, your TouchPad is pretty much toast. There used to be a helpful "stickied" thread here about bypassing setup to get TouchPads working, but it has been un-stickied and most of the links to the required files are dead anyway. You can check this thread and maybe you will find something useful.
It's very sad, I think the TouchPad was a great piece of hardware.
_____ Former HP Expert (Palm/webOS)
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