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For the collection question- you should be able to click the collection icon (under your Reader icon) and delete it.
Just so you're clear though. When you open your eBook library, there's a section for your Library and then, if your Reader is connected, a section for what is actually on your Reader. Unless they are synced, if you delete something from your Library it will not delete from your Reader, or vice versa. I don't recommend deleting books from your Library. I also don't recommend sync, especially if you want to use collections. You set that up through the software though.
The reset- you might not have held it down long enough. Just to make sure, are you closing the software before you disconnect your Reader?
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