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Source: http://www.blackberry.com/btsc/articles/551/KB02318_f.SAL_Public.html

Select the Wipe Handheld option

To delete all the data from your BlackBerry smartphone, complete the following steps. This option is available with BlackBerry® Device Software 3.8 and later.

1. On the Home screen of the BlackBerry smartphone, click Options.
2. If you are running BlackBerry Device Software 4.1 or later, click Security Options > General Settings. Otherwise, click Security.
3. Open the menu and then select Wipe Handheld > Continue.
4. Type blackberry and then press the Enter key. All the data on the BlackBerry smartphone is deleted.

Type an incorrect password

To delete all the data from your BlackBerry smartphone, lock the BlackBerry smartphone, then type an incorrect password ten times. During this process you may be prompted to type blackberry a few times. Once completed, all data on the BlackBerry smartphone is deleted.

Note: You must have a password set on your BlackBerry smartphone in order to perform this task.

Use the Application Loader tool to delete all data

To delete all the data from your BlackBerry smartphone, complete the following steps:

1. Connect your BlackBerry smartphone to the computer, open BlackBerry Desktop Manager, and type the password of your BlackBerry smartphone, if prompted.
2. Double-click Application Loader > Next.
3. On the Device Security Password screen, type the password of your BlackBerry smartphone. Click Next.
4. On the Device Application Selection screen, click Next.
5. On the Completing the Application Loader Wizard screen, click Advanced. The Device Data Preservation screen is displayed.
6. To delete all application data from the BlackBerry smartphone, select the Erase all application data check box. Click Next.
7. Select Do not automatically back up and restore the device application data during the loading process. Click Next.
8. Click Finish. The BlackBerry smartphone resets. This might take several minutes.

Use the Backup and Restore tool to clear the application databases

To clear the application databases from your BlackBerry smartphone, complete the following steps:

1. Connect your BlackBerry smartphone to the computer, open BlackBerry Desktop Manager, and type the password of your BlackBerry smartphone, if prompted.
2. Double-click Backup and Restore > Advanced.
3. Press and hold the Shift key while selecting all the databases in the Handheld Databases list box.
4. Click Clear.
5. Click OK on the Warning window. All application databases on the BlackBerry smartphone are erased.

Type an incorrect password in the Application Loader tool

To delete all the data from your BlackBerry smartphone, complete the following steps:

1. Connect your BlackBerry smartphone to the computer, open BlackBerry Desktop Manager, and double-click Application Loader.
2. In the Application Loader Wizard window, click Next.
3. On the Device Security Password screen, type an incorrect password, and click Next. Perform this step ten times.
4. Click Close. Without software, the BlackBerry device is unresponsive and displays device error 507.
5. Reinstall the BlackBerry Device Software. For instructions, see KB03621