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press and hold the center joystick button, and the volume down buttons.
dont leave those two!
and now power on the device. wait for a gray screen asking you to make a clean boot. press the volUP or volDOWN button and after about 5 minutes your device will make an hard reset (clean boot) and will restore it to factory settings.
over at xda forum the scumbags are charging people for the unlock software i got free from a german friend. this definatly unlocks htc touch, diamond, pro exc its really tricky to excute the last stepsbut it definatly works. all you need to do is join this site free and search for diamond_unlocker or browse through our ppc setion you will find it as i said its free of charge to join and download instructions are very easy to follow after you have completed steps 1-3 you need to flash a new radio. http://www.extremplanet.co.cc/forum/