http://www.technipages.com/motorola-droid-3-how-to-factory-reset.html
Droid3 Factory Reset
This method is ideal if the Droid 3 wont boot properly.
1. Power off the device by pressing and holding the Power button until a menu appears and selecting Power off.
2. Press and hold the X key on the keyboard while pressing and holding the Power button.
3. The device will turn back on. Continue to hold both buttons until an exclamation point appears on the screen.
4. Close the keyboard.
5. Press and hold the Volume Up and Volume Down buttons on the side of the device. The system recovery screen will appear. If it doesn’t appear, try again.
6. Press Volume Down to toggle the selection to wipe data/factory reset.
7. Press the Power button to choose the selection.
8. Use the Volume Down button to toggle the selection to Yes.
9. Wait while the Droid 3 resets. Do not power off the phone while it is in progress.