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DRM = Digital Rights Management. It's a type of digital lock that prevents any books purchased on your account from being read on someone else's...
From the MobileRead Wiki:
Hard Reset (PRS-350/650/950)
WARNING: A HARD RESET WILL ERASE ALL CONTENT ON THE READER.
1. Power off the Reader Digital Book.
NOTE: If the Reader Digital Book is active, you can slide and hold the power button until the Device Shutdown screen appears and then tap Yes to power it off.
2. On the bottom edge of the Reader Digital Book, using a thin object such as a paper clip, press the RESET button.
3. Turn on the Reader Digital Book.
4. While the screen displays Opening book... , simultaneously press and hold down the Previous Page Turn button and the Size button until the Reset All screen is displayed.
NOTE: If Opening book... does not display on the screen, charge the battery for several hours before attempting the reset process again.
5. In the Reset All screen, press the OPTIONS button to delete all content, restore all factory settings, and clear the DRM authorization state.
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