pokee: Go into Settings -> Applications -> Manage Applications, then go into "All Applications". In there, scroll down until you see the Kobo App and select it. It should show details as to whether the program's running (allowing you to force stop), and there should be a set of buttons below that labelled "Clear Cache" and "Clear Data". Using "Clear Data" deletes all the settings and restore the application to a freshly-installed state unless you've been mucking around the file system.
After that, it'll need to run the Kobo setup again, as you've deleted your login info.
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