Your best bet is to just delete the unwanted clutter on the Q through the contacts app. The problem is, unless you delete them in Outlook, anytime you sync they'll be re-added. However, you can get around that by doing this:
- Clean up the clutter.
- Go into ActiveSync on the Q (Start > ActiveSync) and go into Options.
- Uncheck "Contacts" from the sync options.
Now your Q will be free of the unwanted contacts and won't pick them back up. You can also go into ActivSeync on your PC and uncheck Contacts as well.
As for the MOL update. Yes, it's like a Master Reset, but you should already have the latest update available through Verizon (I believe that's MOL3, te latest update from Motorola).