You can do both things thru Telnet to the box IP address,

- Recover Bad Sectors (HowTo) : DreamUp & Telnet
http://www.ourdreambox.com/ubbthreads.php?ubb=showflat&Number=3137#Post3137

- DM : Reset all settings to factory (All DM boxes)
http://www.ourdreambox.com/ubbthreads.php?ubb=showflat&Number=5234#Post5234

TS
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DM8000, DM800se, DM500HD, DM800HD, DM7025, DM7020s, DM7000, DM500s
VU+ Solo, VU+ Uno, VU+ Duo, Kathrein UFS910
Tivusat, TNTSat, Fransat, SSR/TSR, BBC1-2-3/ITV
DE-OpenBlackHole 1.4 image : http://www.openblackhole.com/