Originally Posted by !on
Factory reset can be done without going into the stock recovery mode (as you did in the vid), go in settings > privacy > factory data reset.
Apparently that does not work or is incomplete for 2.2 as that's a hold-over from 2.1. The Moto site advises doing as in the vid. W/o the annoying kid. Moto site:
"Power DEFY™ off.
Wait 15 seconds.
Press and hold POWER/LOCK key and VOLUME DOWN key.
Continue to press and hold POWER/LOCK and VOLUME DOWN until a screen appears with a "!" inside a triangle and a small Android standing in front of it on a black background.
Once the "!"-Triangle screen appears, press both VOLUME DOWN and UP keys at the same time. This can be achieved by pressing the center of the VOLUME rocker.
Once the recovery menu appears (text is blue) use the VOLUME DOWN key to navigate to "wipe data/factory reset".
Select "wipe data/factory reset" with POWER/LOCK key.
Navigate with VOLUME DOWN key to "Yes -- delete all user data"
During this process you will notice the phone format the system memory and cache. This is normal.
After the factory reset has completed, select "reboot system now" with the POWER/LOCK key.
Please allow 3-10 minutes for system to recover. A long pause on the stylised "M" logo or the carrier animation is normal. DO NOT power the phone off during this period.
(MOTOBLUR™ devices only) Once the DEFY™ has booted, you will be greeted with the MOTOBLUR™ login page.
You should now be up and running! You will have to log back in to your Google account and any other accounts that are not associated with your MOTOBLUR™ account."