Options >Security Options >General Settings. Hit menu key and select "Wipe Handheld."
However, the previous owner more than likely didn't cancel the account to release the PIN. Only your carrier or the previous owner can do it. It can be a tough thing to do sometimes. if all else fails, contact
HorizonWirelessOnline.com - Horizon Wireless, Canada’s Cellular Repair Center ß and they can get the pin released for you (not free.)