HI
i have seen that many people had a problem to hard reset the HTC TOUCH 3G i had also faced the same problem when i first bought this phone so to make thing easier see below instructions on the same
REMEMBER - when u do a hard reset u will lose all the data on the phone so back up all important date before doing the same 
HOW TO HARD RESET HTC TOUCH 3G (jade)
THIS IS HOW I DO IT AND IT WORKS
1.Power off the Phone
2.Press volume down button and also Press down the black center button
3. while continuing do the above Power on the phone
4. Now u will get a while screen asking u to press the volume up button
to do the hard rest press the same its done
enjoy
