[Asus  Eee Pad Transformer Prime] psycodrumfreak:
Here's my solution!

Here's what I found:

I was getting a recovery loop (Device restarted, and went into recovery as requested. Tried to reboot through CWM menu, and the device would reboot into recovery without me telling it to) and here's the totality of my experience for anyone who wishes to find a better fix, or tell someone else how to fix. I also see people going through several non discussed issues that I had to face, so here we go:

How it Happens:

I'm one of the brave ones that after I got the issue fixed, I tried to duplicate the issue, with success (I willingly soft bricked my tablet for you all). Here's what I had under my conditions, but I think the commands were the same.

1. CyanogenMod 9 Nightly (06/23)

2. ClockWorkMod Recovery 5.8.3.1

Everything was ok, and I decided to go to stock to recover some apps (I read a lot of other cases where people were restoring stock. This is NOT part of the issue) So to do so, I had to get to boot. I was overjoyed to see the reboot option in the power menu, and even more so to have the recovery option as well, so I selected that and went on my merry way. After restoring the information i wanted from nandroid, I used the reboot option in CWM which is where I got stuck on the recovery loop.

Enter you the user. This is where you are at, and I urge you to verify that your issue is the same: CWM 5.8.3.1 and rebooted into recovery by telling the tablet to before you rebooted. (These are what I believe to be the primary offenders)

I understand what you are going through, heart racing, worried that you broke you expensive (possibly new) toy. I found several places all where people were having the exact same or similar issues. But, everything required ADB to be setup and to enter some commands. Well. when I hooked up my tablet, I was worried because "ADB Devices" and "Fastboot Devices" wouldn't return any active devices, I was at the edge of my seat looking for an answer. I checked my device manager (Right click 'Computer' or 'My Computer' > Manage > Device Manager) to see if the computer was recognizing the tablet. I saw the device 'Transformer' with the yellow !. I tried to update the drivers through windows, but the drivers released from ASUS Found Here weren't getting my comp to do anything with the attached device. I also tried installing the Full PC suite, since it stated that the drivers were included there as well. Still no luck. So, finally I found the Naked Drivers as the OP linked to in this post. These worked like a charm. Installed, and computer showed the Transformer prime as you would expect it to.

Now to ADB. Anyone who has already rooted their device should have ADB setup. If not, there are several threads explaining how to. I recommend not messing with setting up paths to make it a universal variable, just go to the folder that has adb.exe I did "ADB Devices" and found the device labeled with recovery after it. Here's the new fun issue I was having. When I am using ADB, it would say that the "ADB server is out of date. killing...." and then it would either not work, or it would work. I would try the same ADB command 3 or 4 times and it should return what you need it to. (Worked like a charm for me as well on REV 11 of platform-tools if you update through the SDK manager). Next if you follow this guide, you need to type adb shell so that when it pops up, you get "# " to appear in the command line. This again I had to do 3 - 4 times for ADB to do what it needed to. Here's the frustrating this. It would eventually time out and I would get

** daemon still not runningerror: cannot connect to daemon

and it would return to cmd line. My solution:

1. Copy the command that would be entered in the shell to your clipboard

a. Command 1: dd if=/dev/zero of=/dev/block/mmcblk0p4 bs=100 count=1

b. Command 2: dd if=/dev/zero of=/dev/block/mmcblk0p3 bs=16 count=1

2. Enter "ADB Devices"

3. While ADB is working, right click in CMD, and hover the mouse over paste (seeing as Ctrl + V doesn't paste)

4. If ADB works for you, click to paste the code, and press enter.

5. If you missed your chance, or it didn't happen, repeat until it does.

You may be asking how I could maneuver my computer to copy and past both commands before it times out on me. Well, I just did the 2 different codes in two different shell sessions. Copy the next code, and repeat the steps above until success. I'm sure there is a fix for ADB somewhere, but since this worked, I was more overjoyed that my table was healthy again that I gave up on updating it.

Now, I could follow the guide to the end with out any hiccups. But that is when I got curious about how it happened, and since the method worked for me once, I was daring enough to try it again. So, I reinstalled CM9, and just tried to reboot. Rebooted correctly. Then I powered off the tablet, and manually went into recovery. Rebooted from recovery and tablet started up just fine. Rebooted to recovery from power menu, this triggered the recovery loop. Each time the only thing I did in recovery was select reboot device now.

Followed this guide again (much easier the second time through) and was able to boot back my device just like it was before the issue, and I told myself to just not use that option....BUT I am not someone to just let sleeping dogs lie.

I don't really ever use the Clockwork Mod app, so I remembered that you can flash the recovery through there. Went into the app and told it to flash the recovery. Successfully updated recovery to 5.8.3.4, and tried the recovery reboot through power menu again, and the tablet went into recovery only once!

If anyone has any questions, feel free to PM me, and I will try to help out, otherwise add them to the thread for the community to address.

**ALL CREDIT GOES TO THE OP DIAMONDBACK WHO ACTUALLY FOUND THE SOLUTION, I AM MERELY SHARING MY EXPERIENCE TO THE THREAD IN CASE ANYONE HAS THE SAME ISSUES AS I DID**