My g1 wont reset to the factory settinngs

Try hard resetting it once. But make sure you have enough charge. But this will erase everything.

To perform a Hard Reset

1. Turn the phone off. If it is frozen, take the battery out and put it back in.
2. Hold the Home and Power keys down at same time for about 25 seconds. You will see a yellow triangle screen with exclamation point in the middle.
3. Press Alt+L.
4. Press Alt+W for a factory reset.
5. Press the Home and Back keys again for about 25 seconds.

http://www.resetcellphone.com/solution/HTC/g1

hay muchos htc g1 que tienen el mismo problema parese que nadie pouede darle solucion.... yo tambien tengo un g1 pero no se que puede pasar.... ando en tar de solucionar el problema... que sera...

No, unfortunately it wont! you will need an unlock code to unlock or sim lock free your phone! you can get your g1 htc unlock code from here.
Let me know if you need more help.

This was copied from a site on the web. I personally have used the instructions below and it worked for restoring my G1. Once it is restored, you may want to try to run the update again.

1. Turn the G1 off. If it’s frozen on, take the battery out and put it back in the unit.

2. Hold the Home and Power keys down at same time for about 25 seconds. You will see a yellow triangle screen with exclamation point in the middle.
Now to wipe the device clean:

3. Press Alt+L.

4. Press Alt+W for a factory reset.

5. Press the Home and Back keys again for about 25 seconds.

The phone should reset again and the hard reset is complete.

1. Power off the G1
2. Hold Home Key + End key for 20 seconds or until you see a "triangle with an exclamation point and a picture of the G1"
3. Open the keyboard and hit Alt+W
4. Restored!

Have you tried a reset using the hardware buttons? To perform this, you need to turn off the phone first. While it is off, press and hold the home key and the power key at the same time. Keep holding the buttons until you see a screen with a triangle and an exclamation point in the middle. Once you see the triangle, let go of the buttons and open the keyboard. Press ALT+W at the same time, and the phone should reset.

Hi there.
Factory reset will delete everything (not in all cases though) back all your numbers up to the sim card, back photo's and games up to the memory card (if you have one) and restore the phone to factory.
As for any messages forget them.

Good luck and thanks for choosing FixYa!!

http://www.androidcentral.com/factory-reset-tmobile-g1

You may try to do factory reset of your phone (save your data first!!):
'Home' > 'Settings' > 'SD card & phone storage,' then select 'Factory data reset.'