I have found the only solution to this problem is to select one of the profiles, go to the settings tab and in the "My Name" field, type R-E-S-E-T, with the hyphens. This will reset the computer to factory settings. Hope this helps!
When you R-E-S-E-T you will remove all profiles as well as any downloaded games, etc. If you used the navigator on you computer to download the games, when you reconnect the Innotab it still contains the items you downloaded and can re-install all of them if you have not deleted that info from your computer.