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Just to be clear, there is a significant difference between a hard and a soft reset.
soft reset = kinda reboot, everything will be there when powered on
hard reset = kinda format c: -> reinstall windows -> reinstall programs, which are included (so everything you saved, installed, whatever after you got your axim will be gone, FOREVER, no way back, despite for backup)
When do which reset:
soft reset:
Whenever your axim is acting strange, is locked or something different. A soft reset will help in most cases.
hard reset:
Well that depends, if everything is ok, why touch it.
I'm doing a reset twice a year, just to get everything clear. Get me the newest software and so on. It really depends on you.
And no, neither a soft nor a hard reset will damage your axim.
Maybe if you doing it like 20 times a second;).
Hope that made some things clear.
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