Second way - Press and hold the two silver keys (left and right) situated just below the screen. Now insert the stylus pen into the tiny hole which is situated around the bottom right of the back of the device for 5 seconds. Follow the on screen instructions.
If you want to perform a soft reset on you X1 you will not lose any data.
There are a few ways to perform a soft reset, one is through the use of applications on the X1 like "Advanced Config" or if you look at the 2 images below:
While your device is on, simply insert your stylus into the small hole and push down, your device will restart its self.
HARD RESET:
This will restore your phone to its factory defaults, i have done this my self and it went back to exactly how they gave it to me in the store which is exactly what i wanted it to do. In the image below you can see what buttons you have to press.
While the phone is off -hold down the front left and right buttons on the X1 and insert your stylus into the soft reset hole all at the same time.
After i did this i was presented with a blue screen that told me to press R to reset and delete all my existing stuff. Then i had to callibrate the stylus and the same stuff the day you got it
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