I need to device unlock an HTC shadow. How do I do it?

A friend of mine gave me her old HTC shadow smartphone. Its the one with the spinning wheel thing in the middle, not the touch screen. I just finished charging it up, and now that I turn it on, a screen comes up saying too many password attempts. I haven't even tried any passwords except the factory settings which is 1234. This didn't work. I'd like to hard reset it to see if that works. But when I tried that, which is "hold both soft keys while powering it on", it didn't work. It Just goes back to the same password screen. Am I doing something wrong? Does anyone know what to do?