Reformat option in your Droid/ Droid-X helps you delete every data stored in your phone memory. You may want to perform a reformat, if your phone turns too cluttered or messy. Reformatting can simply delete every data stored and at the same time, you have all the settings are restored to factory. Also if you have malware threats in your device and associated issues like memory leak, performance trouble, application hang/ freeze or multi tasking issues. Reformat can be a perfect cure if you wish not to go with an antivirus program. You can wipe of every data including the viruses.
Backup
As I said before, a reformat will take off every stored data in your device. So if you have some important data, be sure to create backup. Specially your contacts. Sync the device with your PC and create necessary backup. It should be noted that your micro SD and SIM card are excluded from the reformat, so if you are performing a reformat due to malware issues, better be sure to reformat your memory card as well.
Reformatting Droid
Now to start with the reformat, you can turn off your Droid/ Droid-X. You need to hold the Power button and the Home Button. Now the Motorola logo is be displayed, which is followed by a triangle with Android icon next to it. Now press the Search button to display the menu. You will get a window displaying 4 options, make use of the Volume Rocker to move the selection up or down and chose the Wipe Data to Factory Default option. You can select the option with the Camera hard key and confirm the selection with your Camera key. You will be taken back to the original menu, from there you can select Reboot Device. This will reformat your device, after it is done, you will need to reprogram your phone with OTA updates.
Reformatting Micro SD Card
To reformat your Droid or Droid-X Micro SD card, you can launch the Menu by pressing the Menu key from the Home screen. Now touch Settings then touch the SD card & phone storage. From here chose Format SD card, confirm your action by touching the Format SD card again. This will initiate your Micro SD reformat, which will take less than a few minutes to complete.