There's a bit of voodoo magic involved in getting this to work, but the way that I found was to do the following (note, I've got an SPV E200):

1: Power Off Phone
2: Hold down record button (for audio notes)
3: Power on Phone
4: While still holding down the record button, push the joystick button down
5: Release joystick button & press it down again

Hopefully at this point, you're looking at a menu with 1->8 on it, select 8 and the phone should hard-reset.
It took me about 8 goes to do this - if you end up at a red/green/blue screen, you've got it wrong, and you'll need to whip the battery off and start from scratch!

HTH,

Olly.

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Progress is seldom made by early risers or hard workers. It is instead made by lazy people looking for easier ways to do things.