Important Make sure to back up important data you have on the device before you perform a factory data reset."
HTC Magic Hard Reset Procedures1. With the phone turned off, press and hold the HOME and BACK
2. Briefly press the END CALL/POWER button while continuing to pressHOME and BACK buttons.
3. When you see the screen with the 3 Android images, release the HOME 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.