in order to bring the device on facotry settings, u have to press the power button and reset the deivce, once u c the palm logo on the device, release the power button, u will find a message which will ask u to delete the data stored on your device, follow the instructions ,,,
one thing more ,,, u have to delete the back up folder which u gonna find on your desktop, otherwise during the sync u will get every thing back on your deivce. u may find the back up folder on the following path ,,,,
C:\Program Files\Palm\(name of your device )\Backup