A friend of mine bought a month-old N85 yesterday and did a hard reset (*#7370#) to get rid of the previous owner's stuff, however this also formatted the memory card (original Nokia 8GB which came with phone). He says a "repairing card" message showed up briefly on screen, then disappeared and the card was empty afterwards, i.e. all the pre-installed Nokia stuff had gone.
Would this have been a one-off glitch ? I feel slightly guilty, since I was very convinced the hard reset would not affect the memory card nor the flash memory and told him he could leave the card in.