DROID SYSTEM RESTORE

Here is a link to the way to do a hard reset, I'll check to see if there is an app but I'm not aware of one
http://www.ehow.com/how_5634169_hard-reset-motorola-droid.html

Thanks for the link. I wouldn't necessarily want to lose everything, just restore it to a previous date.

The best thing you can do is root the Droid and install SPRecovery, a custom recovery console that allows you to do something called a nandroid backup. It takes a snapshot of your phone's state and stores it on the SDcard, so you can do a full wipe and restore your phone to any previous backup.