In order to reset everything, you have to first hard reset the Palm, move away the Palm backups, and reset the sync memory in DayLite.

Hard Resetting the Palm
Usually, Palm devices have a small opening (small enough to fit the tip of a paper clip through) on the back of them.
To hard -reset it, you press the power button while at the same time pressing with a paperclip in the opening on the back of the Palm. release the paperclip and then release the power button, you should be prompted with a message to verify if you want to delete all data contained in the Palm. Please check your Palm owner's manual, as resetting procedures can be different for some models.

Moving the Palm Backups
After you have hard-reset your palm,
Go to Finder -> <Your Home Folder> -> Documents -> Palm -> Users -> <username> -> Backups
put all the contents from the Backups folder into a new folder. When you have done this, move the new folder to your desktop until we can make sure that the new sync was successful.

Resetting the Sync Memory in DayLite
Once the Backups folder is empty do the following

• Go to DayLite -> Preferences -> Palm Sync
• Check the "Enable Palm Synchronization" checkbox (if it's not already checked)
• Click on "Reset database to current"
• Click on "Reset Last Sync Date" (this clears the sync memory)
• Click on "DayLite takes precedence"
• Click on "Calendar" and ensure that "Active" is checked and do the same for "Notes", "Tasks" and "Contacts"

Close DayLite and perform the Sync from your Palm (or the cradle).