I have been trying to do a hard reset following all your instructions--unsuccessfully. (I kept getting application crash notifications whenever I woke up my Nexus 7).
I have been holding the power button down while pressing the volume down button simultaneously. But when I get the option of entering recovery mode (and pressing the power button), all I get is small green robot icon and a "no command" (plus small red exclamation mark). Then it is stuck, nothing else happens.
So I never am able to enter recovery mode or have the option of erasing everything on the Nexus 7.
I am stumped. Any suggestions. My Nexus 7 seems stuck.
Ok so I had the same problem, this is how I fixed it: After choosing recovery mode on fast bootloader screen, I got to the Android with the exclamation point then I double clicked the power button and on the second click I held the volume up button. I was then taken to the reset screen. Hope this helps.