Press and hold the left SOFT KEY and the right SOFT KEY, and at the same time, use the stylus to press the RESET button at the bottom of your device.
OK ... tried that ... but the device just does a soft reset and starts up normally afterwards. The left / right soft keys are the ones you use to select the associated menu / selection options in applications.
Note that the hard reset through the other route works fine:
1. Tap Start > Settings > System tab > Clear Storage.
2. Type "1234" in the box and tap YES.
Am I missing something here ...?