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For a Mogul hard reset, you simply press and hold the two softkeys (two buttons under the screen with a dot on them). While holding those buttons, use your stylus to press and release the reset button at the bottom of your phone.
Continue to hold the softkeys until you get a gray screen with blue writing. Follow the instructions and you are hard reset.
A hard reset should always be done after installing a ROM different from the one you previously had.
A hard reset removes all software/settings you have installed after updating a ROM (clean slate).
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