Resetting the HTC Magic
To reset the HTC Magic phone using phone buttons scroll down 
Resetting the phone deletes all data, including downloaded applications, and the phone back to its initial state, the state before you turned on the phone for the first time.
Important Make sure to back up important data you have on the phone before you perform a factory data reset.

To reset the phone

1. Press HOME > MENU, then touch Settings.
2. Scroll down the screen, then touch SD card & phone storage.
3. Navigate to the Internal phone storage section, then touch Factory data reset.
4. On the Factory data reset screen, touch Reset phone and then touchErase everything.

HTC Magic hard reset

Factory reset using key combination 

To reset the HTC Magic phone using phone buttons

1. With the phone turned offpress and hold the HOME and BACKbuttons.
2. Briefly press the END CALL/POWER button while continuing topress the HOME and BACK buttons.
3. When you see the screen with the 3 Android imagesrelease theHOME and BACK buttons, and then press the TRACKBALL.

Tip If your phone hangs or freezes, remove the battery then wait for a few seconds, and then re-install it. After re-installing the battery, turn on the phone.

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