Resetting iPad in 4.2.1

I remember that before 4.2.1, if you powered off the iPad, then back on, it will clear the memory and you could start fresh. Now, if I have apps running in the task bar and I power off and then on, the same apps continue to show on the task bar.

So, how can we clear up memory in 4.2.1?

If I try to do a reset (hold power and home buttons until the Apple logo shows), I get the "Connect the iPad to iTunes" sign, meaning the iPad has entered Recovery Mode.
What's the command or key combination that we can now use to clear up the memory (like pushing the reset button on your computer).

I found a "Reset Settings" option which claims to leave my data intact, but wouldn't that delete all my settings including eMail account configurations, Skype configuration, apps and folders organization in the home screens, etc.?

Dumbledorelives said:

To end running apps, open the multitasking bar and press and hold one of the apps until a red minus appears in the top left corner of the app icon. Press that. Continue pressing for ever app open. That will close and end all running apps. Then you can do your reset. I hope that's what you're looking for, as that's the only thing I can think of. I would avoid pressing the reset settings button.

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Thanks. I have tried that, but I was actually expecting something that would close all running apps and restart. I would imagine there could be running processes that don't show in the Multitasking bar and may reload after the power cycle.
In the meantime I'll just follow your advice, hopefully there's a better way and someone will bring it up sooner or later.