From your home screen press Menu > Settings > Privacy > Factory Data Reset.
Your contacts are already backed up to the email account you have registered with the device. So save any other files you may want - photos, documents, music. You can do this by selecting the Disk Drive option when plugging your device into a PC. Then just drag the files from the phone and drop them on to your desktop.
This did seem to solve all my issues I was experiencing...at least from what I noticed. However, not all my contacts were synced back up. It seems some of the contacts I initially deleted are now on the phone, and some of the contacts I have added in the last couple months are no longer there. Also, I wish I had written down all the apps I downloaded because they are all gone now. At least my calendar works though, that was my biggest issue since the upgrade.
thanks for the quick response.