Here's how to "hard" reset your Droid X to Factory conditions:
Goto Setting->Applications->Development and check the "USB debugging" ON.
Install Android SDK – Android SDK | Android Developers (http://developer.android.com/sdk/index.html)
Install ADB drivers for Windows only (no need for mac and linux
go to the sdk\tools directory
type "adb reboot recovery"
The Droid X will reboot into recovery mode.
When you see "!" sign, hit power button and "search" button together,
you should now see the recovery menu.
Hit the "wipe data/factory reset" and hit OK.
This will reset the Droid X and allow you to download apps. (which I
couldn't do for last two days)