What's the difference between factory reset and hard reset?

The two terms factory and hard reset are associated with settings. A factory reset relates to the rebooting of the entire system, while hard resets relates to the resetting of any hardware in the system.

Factory Reset: Factory resets are generally done to remove the data entirely from a device, the device is to be started again and requires the need of re installation of the software. The factory reset makes the device function again in a new form. It cleans the entire system of the device. It is probably done at the time of updating to a new version of the device's software.

Hard Reset: When a device does not function properly, it means the setting in the device needs to be changed, so only that part of the device is reset, or rebooted in the hard reset. It clears all the memory associated with the hardware and updates the hardware with the latest updated version. After the hard reset, the CPU or the processor restarts the application.

For your case I would recommend a hard reset since a bug is most commonly not a system-wide issue. If you want to upgrade your firmware or remove several problems along with the bug however, then a factory reset might suit you better.

You can find out more in these webpages:

http://forums.androidcentral.com/droid-razr/166480-what-difference-between-hard-reset-soft-reset.html

http://www.smartmobilephonesolutions.com/content/difference-between-soft-reset-and-hard-reset-on-mobile-phones

http://www.differencebetween.info/