How to restore droid to factory default?

Besides just wiping my SD card...how to I hard reset my phone to it's factory state? Mainly I'm just trying to speed up my phone as it seems a bit sluggish even when I don't have live wallpapers running.

 

1. Turn the Droid off. If it won’t turn off, take the battery out then place it back in.

2. Open the keyboard and press the X key while pressing and holding Power. The device will power on. Keep holding the buttons down until a yellow triangle appers.

3. Press the Camera and Volume Up buttons at the same time to get to the menu. (I had to press them several times).

4. Use the direction pad to the right of the keyboard to select the Format option.

 

I just did it by hitting settings...then privacy...and factory reset. I don't know what the difference is between the two ways of doing a reset.

 

I am using wifes upgrade to get DX and she is getting my droid, will a factory reset clear the phone back to "out of the box" stock to include the set up screen for activating a google account as she does not have one?

 

Yes, don't forget to format the sdcard.

 

Thanks for the quick response!! Format can be done though the privacy area under settings correct?