Complete Fix Solution

How to Reset Android Phone Motorola Droid

How to Reset Motorola Droid

To reset your phone to factory settings and erase all the data on your phone,
Touch Menu > Settings
> Privacy > Factory data reset > Reset phone.
Warning: All data on your phone will be deleted.

Motorola Droid Hard reset with keys

Power off device.
Press X key on hard keyboard + power button, then release both buttons.

When you see exclamation point press and hold VOLUME UP + CAMERA KEY. You will see Android system recovery menu.
With D pad go to data / factory reset, then press CENTER D Pad, then choose Yes.