I thought that since I've had to do this a few times and still had a hard time remembering how I did it, I would post how to do it here. So if anyone needs to and doesn't know how, here you go: Before you begin anything else, back up ALL of your files to either your microSD card on the phone or to your PC or laptop with the use of the USB Data Cable. Be sure to write down passwords to applications you may have downloaded if you wish to reinstall them after Hard Resetting. Once you have everything saved that you want, remove the microSD card from it's slot, located in the battery compartment. You will need to remove the battery first to remove your microSD card. After card removal, return the battery to it's working position. Do NOT turn the device back on yet. Step 2 With your Motorola Droid still powered "Off," slide open the keyboard. Step 3 Press and hold the "X" button on the keyboard while pressing the "Power/Unlock" button, located next to the 3.5mm headphone jack. Continue holding down the buttons until a yellow triangle "Warning Sign" appears on the screen. Step 4 Once the yellow warning sign appears, press the physical "Volume UP" and "Camera" buttons simultaneously until a new menu appears. This may take several attempts before success. Step 5 From the new menu that appears on-screen, go down to the "wipe data/factory reset" option using the Directional-Pad next to the keyboard, and press the "Center" button on the D-Pad to confirm. Step 6 Scroll down to the "Yes -- delete all user data" and press the "Center" button on the D-Pad once more. That's it! When your Motorola Droid is done wiping all saved applications, information, and settings, your device will be back to the factory settings.