I was not able to find any documentation for resetting my MSN Direct watch to its factory settings, so I will post my findings here just in case another user would like to reset his or her watch in the future.
I have a Fossil FX3001. Two buttons on the left and three on the right. Press down all three buttons on the right side. Wait for the watch manufacturer’s logo to appear. Keep doing this until the time resets to 12:00. The watch is configured to reset to factory settings if you reboot the watch ten times within five minutes. Cycle through the channels once you see the time reset. You should have time, register, messages, and calendar channels.
You can login to the MSN Direct site, click on “My Account”, and remove the watch from your account. Note that you do not remove the subscription, just the watch associated with your subscription. If you buy a new watch with support for MSN Direct services you can associate the new watch with your existing yearly subscription.