Here's how to FACTORY RESET the device.
Install Blackberry Desktop Manager on a PC. Connect the Blackberry to the PC with a USB cable.
From a DOS prompt (command) window on the users PC (from Start - Run type cmd <OK> then change directory path to:
C:\Program Files\Common Files\Research In Motion\Apploader by typing cd\ (enter) followed by cd Program Files (enter) then cd Common Files (enter) etc etc
Run the command: Loader.exe /resettofactory
That will bring the Blackberry back to the state it should be in when you get a brand new one out of the box.