Best way to wipe everything and start fresh?

[Big Fish]

I'm currently running v2.3.340 and I've put off going to Gingerbread until now. I'm rooted and I've frozen some bloatware. I don't use any ROMs and I've never SBF'ed before, but I'm not afraid to SBF if I have to. I've done a lot of experimenting and tinkering with things so I'm thinking that I'd like to start from scratch before I make the jump to .605.

What's the best way to wipe everything and start fresh?
Does a factory reset actually take your phone back to like new?
Would it be easier to SBF to .602 and then take the .605 update?

My plan is to start from scratch, get to .605 and then root using the method outlined here:
One-Click Root for Stock Gingerbread (Droid X, Droid 3, Droid X2, Cliq and Cliq 2) [From the Forums]

In case this matters... Baseband version: BP_C_01.09.07P

 

[leftspin]

I would SBF to .602 and then take the .605 OTA and re root

 

[PS3Gamer]

^^ Do that! I'm still trying to figure out how to get the custom CRT animation lockscreen back that I once had..

 

[Big Fish]

I'm in the process of running the .602 disk found here:
Linux solution to your Windows/RSD lite problems

 

[Big Fish]

I'm officially on version .605 and I'm rooted!!!