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Resetting HTC phones to factory settings

I recently grabbed my second Android phone, a HTC Desire. While I was very pleased with my HTC Magic, the Desire has a few features the Desire does not, and so I decided to spring for it.
 
I wanted to be able to hand over my old phone to someone else, but didn’t want them to see what I’d had installed and stored on the phone. Luckily, this is very simple to accomplish, as there is a built-in tool made to reset the phone to factory settings. Here’s how to use it:
 

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