How do I Factory Restore?

Re-boot while holding down Command + R, first use Disk Utility to erase your Volume, then reinstall Mountain Lion. Things will be just like they were when you first turned your computer on.

This will go faster if you first connect using Ethernet.

You'll have to follow these steps:

1. Boot into your Recovery Partition by holding down the Command and R keys on startup.
2. Use Disk Utility to erase the contents of the internal drive, selecting "Mac OS Extended (Journaled)".
3. Reinstall Mountain Lion via Internet (don't try this wirelessly - Ethernet will be faster)
4. Now you'll have a semi-virgin system. You will have to redownload the iLife apps from the App Store.

I'm not sure why you can't see the files on your Mac Pro - I'm assuming that you used Migration Assistant to migrate your data in the first place? If you want to just cherry pick certain files to bring over to your new MBP, just turn on Sharing in System Preferences.

Clinton

Just follow the directions I gave you, that's all you have to do. When OS X is reinstalled, do this to recover the iLife Apps:

f you erase install OS X Lion or OS X Mountain Lion on a new Mac that shipped with OS X Lion or OS X Mountain Lion installed, you can download iPhoto, iMovie, and GarageBand from the Mac App Store.

1. After installation, start (up) from OS X.
2. Double-click the App Store icon in the dock.
3. Enter your Apple ID and password.
4. Click Purchases.
5. If you haven't previously accepted your bundled iLife applications within the Mac App Store, you should see your iLife applications appear in the Accept portion of the screen. Click Accept.
6. You may be asked for your Apple ID and password once again. Your iLife applications now move to the Purchased section. These applications are part of the software that came with your Lion based computer. Your account will not be charged for them. Click Install to complete installation of your applications.

If you erase & reinstall, as I stated, your machine will be just like it was when first taken out of the box. All you have to do is reinstall the iLife apps.

Nope, that's it.

When you start over, use Setup Assistant...if you use Migration Assistant after you first setup, you will create another user account.

Yes, you want to erase the whole volume.

Don't know what to tell you...we warned not to use WiFi.

Do you have a router? Heck, with one Ethernet cable you could even hook the two computers up. If I were you, I'd run out and spend the $5 on one or even two Ethernet cables (if you've a router) and let thing sail. You can see what kind of problems wifi causes...

Clinton