bump someone must be able to help

Hi all,
I have an XDA II which i brought an E200 Charger from my local shop to charge and its now i think charging.

Well the Green lights on the Handset.

Now i need to get rid of all the infomation on the phone and basically clean it and format so i think a Hard Reset will do the job this is where i am having problems!

I Pressed the On/Off button while pressinf the Reset button with my pen but all that comes up is
a box sayng ' The power is insuffient to... etc)

another thing i tried is pressing the on/off and the up key and reset button i get text on the screen saying:
USB and at the bottom V.1.06

and if i take the charger out it removes the USB with Serial on it...

Basically i want to hard reset but i dont know how ? and most tutorials are on the SPV etc,
And it says low battery wbut i have the battery on the phone dose the Green light means its charging or the red one when i put it on charge it goes red then the phone goes on and the light turns green so how is it means to charge ?

thanks alot people!