bellsouth/att.net email

[frankrigor]

All of a sudden my droid is sending (and receiving) emails that it seems to have picked up from my trash folder and blasting them out to my coworkers. I thought it was something coming from my home computer, but it does not seem to happen when I use my home computer, but does with email from the droid.
How do I delete the trash folder? How can I fix this? Is it a virus/worm/Trojan horse?
Will rebooting or resetting to factory settings fix it? I don't even know how to do that!