Nokia Lumia with Windows Phone 8
Step 1Make sure the charger is disconnected.1. Switch the power Off.2. Press and hold the Volume down and connect the charger, if succeed an exclamation mark (!) is shown on the screen.
Step 2Then input the keys in the following order:1. Volume up2. Volume down3. Power4. Volume down
Step 3The phone will reset and boot up automatically. Please note that this may take several minutes.
Why would you need a T9 keyboard? QWERTY + word suggestion is better IMHO
you're at step 2.
For the dialer....
The most important thing to remember is not to rush it ... give it time to do it's thing.
I was at the same situation as you, put it down and pondered my options, looked down and it saw the "Welcome to your new Windows Phone".
The phone is scalding now, I have it connected to my USB on my surface, this cant be right!