If you wish to clear all settings from your Droid X, you can perform a hard reset on the device. A hard reset is normally used when you are selling your phone and need to clear the data or if things aren’t working properly and you wish to start anew.
Hard reset before device boots
1. Turn the phone off.
2. Hold the Power and Home buttons down for about 5 seconds.
3. A screen with an exclamation will appear. Press the Volume Down and Volume Up buttons simultaneously.
4. Scroll down to wipe data / factory reset using the Volume Down button.
5. Press the Power button to choose the selection.
6. Confirm the selection.
7. Select Yes — delete all user data.
8. Press Power to confirm.
The Droid X will then complete the hard reset.
Hard reset after device boots to Android OS
1. Open the Settings app.
2. Select Privacy.
3. Select Factory data reset.
4. Tap the Reset phone button.
5. Tap the Erase everything button to confirm the hard reset.
Thanks to txparamedic for the tip on the changes made to this process after the Gingerbread update.