First, check
here, it might just be a cable problem.
However, your indication that it works fine on AC power but not on DC power makes it sound like a wiring problem with the car installation. Please check all wiring connections and make sure you have full continuity and proper power on all of them. For instance, make sure the fuse on the constant power wire is not blown, make sure the 12v switched really is 12v switched, make sure the constant 12v really is constant 12v, etc.
You also might be running constant 12v on a too-thin wire and it's not supplying enough juice to spin up the drives.
Yes it is possible to clear the entire player and start fresh. However, you should not need to do this. It is much easier to simply delete all of the songs and playlists. Your problems most likely do not stem from anything you've loaded onto the player.