fyi, the hardware reset is still there if the Fast boot feature is turned on. Press the power button to display the Turn off/Restart option and tap restart. Hold the volume down key and tap restart again. The phone should restart into the recovery menu.No problems with SMS here, but I can't send or receive MMS. What exactly is your issue with SMS?
EDIT: I did a factory data wipe last night (I guess that's a hard reset now - the option after holding the volume button and powering on are all different than on 2.2) and am now able to send and receive MMS just fine. Not sure that's the route you need to take with your SMS problems, but syncing with Google and apps like Appbrain and SMS Backup+ are free and indispensable.
If Fastboot is disabled, you can still do the volume down/power key option as before to get into recovery.