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Help problem with nexus S

Ok so how do I do this? And does this factory reset remove all apps and contacts and stuff?

The factory reset will wipe all apps and data associated with the apps, however, it will not wipe the virtual SD partition which would normally contain any app backups (i.e.Titanium, ES File Explorer App backups, Pictures, Music, Videos, etc.). You can also ensure that all your data and apps are backed up to Google Servers by going to Settings > Backup & reset > tick back up my data - beware though, this would automatically restore all apps and data once you have entered your account info after the initial setup and therefore, it would restore the app(s) in question and recreate the problem. Best way would be to use a third party app for backup of apps and data such as Titanium. I personally would recommend a different approach as restoring data with your apps always is prone to problems - to renter the individual app login details is relatively quick and if you have lots of apps a simple way would be to go to your PC and reinstall the apps from your account remotely from there.
 
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