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Point 4 (2nd one) is key...click the 'repair phone' highlighted in BLUE then follow steps. Dave
1. Go to sony mobile website
2. Select Support
3. Choose your handset from the drop down list
4. Select "View All Software Updates"
5. Download for PC
6. Check the requirements and then "Download PC Companion"
To then perform a repair on your handsets software, please follow the steps below:
1. Open PC Companion
2. Start 'Support Zone'
3. Select Phone Software Updates
4. At this point a pop up will appear on screen asking you to connect your handset while powered on, as the software repair needs the handset to be switched off please ignore these connection instructions and click on the blue link which states "Repair Phone”
5. Some on screen steps will now appear for you to follow. Please also connect the handset when you are prompted to do so.
6. When you are asked to connect the handset (still with the phone powered off) please press and hold the key stated on screen for 30 seconds before connecting the handset and keep it held down as you connect
7. The repair process should now begin.
Although this has been posted many times your title is still wrong for the process you describe - This is not a factory reset, This is called a software/system repair