No guarantees. Do at your own risk. (Why do we always feel the need to protect ourselves when giving advice?)
Method 1
I'm assuming you want to do a non-destructive erase 
and that you have gotten all the information you want from your SD card. This is the easy way.
Menu > Settings > SD Card & Phone Storage > Unmount SD card > Format SD card.
Menu > Settings > Privacy > Factory Data Reset
Method 2
I'm a little bit paranoid so if I had sensitive data on the SD card, I'd remove it and replace it with another, because some data can still be retrieved even from an erased SD card. But if all you had on the SD card were a recipe for Aunt Helen's crumb cake, a few pictures of some flowers, and a pic or your boss with a lampshade on his head, who cares.
I'd do a factory reset via the following procedure:
- Turn off the phone
- Power on phone while pressing and holding the "X" key on qwerty keypad - release "X" and power key after you see Motorola batwings. You should now see an "!" in a triangle with Android guy.
- Press the "Search" key on qwerty keypad to enter factory menu, this will unhide the menu and show the following options
- Reboot system Now
- Apply sdcard:update.zip
- Wipe Data/Factory Reset
- Wipe Cache Partition
- Use Vol Up / Vol down to navigate to "wipe data/factory reset" and then use Camera side key or Menu key to select "wipe data/factory reset"
- Use Vol Up / Vol down to navigate to "Yes delete all user data" and then use Camera key to select "Yes - delete all user data"
- Wait for operation to complete (maybe 1 minute or so) and then press camera key to select "reboot system now"
You are now completely erased and factory reset.
No guarantees. Do at your own risk. (Why do we always feel the need to protect ourselves when giving advice?)
Method 1
I'm assuming you want to do a non-destructive erase and that you have gotten all the information you want from your SD card. This is the easy way.
Menu > Settings > SD Card & Phone Storage > Unmount SD card > Format SD card.
Menu > Settings > Privacy > Factory Data Reset
Method 2
I'm a little bit paranoid so if I had sensitive data on the SD card, I'd remove it and replace it with another, because some data can still be retrieved even from an erased SD card. But if all you had on the SD card were a recipe for Aunt Helen's crumb cake, a few pictures of some flowers, and a pic or your boss with a lampshade on his head, who cares.
I'd do a factory reset via the following procedure:
- Turn off the phone
- Power on phone while pressing and holding the "X" key on qwerty keypad - release "X" and power key after you see Motorola batwings. You should now see an "!" in a triangle with Android guy.
- Press the "Search" key on qwerty keypad to enter factory menu, this will unhide the menu and show the following options
- Reboot system Now
- Apply sdcard:update.zip
- Wipe Data/Factory Reset
- Wipe Cache Partition
- Use Vol Up / Vol down to navigate to "wipe data/factory reset" and then use Camera side key or Menu key to select "wipe data/factory reset"
- Use Vol Up / Vol down to navigate to "Yes delete all user data" and then use Camera key to select "Yes - delete all user data"
- Wait for operation to complete (maybe 1 minute or so) and then press camera key to select "reboot system now"
You are now completely erased and factory reset.
