The pin-hole reset is a way to restart te device when it has hung. It shouldn't change anything on the device.
Doing a logout on the device is the usual way to fix this. It will restart, create a new database and take you through the setup. It will check for new firmware, but if you are already on 3.2.0, it shouldn't cause any problems. I don't know what affect this will have on the hacks you have installed.
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