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Okay, I spent some time digging in ebook.so and found the "offical" way that doesn't involve hard reset.
To enter or exit the demo mode on PRS-300, do the following:
1. Power off the Reader.
2. On the bottom edge of the Reader, using a paper clip, press the RESET button.
3. Turn on the Reader.
3. While the screen displays Opening book... , simultaneously press and hold the Center in the directional button (aka Enter key) and the 1 button until you see the home screen.
To check if you're in the demo mode, look at the "Settings" menu item. If you have "9 settings", you're in demo mode. Normal mode is "8 settings". The ninth "setting" is the demo screensaver.
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