HTC Magic with OpenEclair: Factory reset doesn't work!
You didn't do a factory reset then, but probably a soft reset. To perform a factory reset from the Home screen press Menu > Settings > SD card &amp; phone storage > Factory data reset > Reset phone > Erase everything. That should take you back to square one. Reply back with a comment if not.

Update:
Boot into the bootloader: Completely power off the deivce. Then hold down the Back button and press the Power/End Call button to restart your phone. Keep the back button held down till the bootloader menu appears. From here do you have an option to wipe, reset, or factory reset (or something along those lines)? If so try it.