I guess you approach is the one that works - been trying to avoid it, I have 57 Gigs of stuff on my 80 gig drive. We're talking many hours of re-installing and restoring, just to avoid Xing that popup. One day I'll do it.
Good luck. That reinstall took me all weekend, but besides eliminating the infernal "spyonyou" it also cleared up a few other software problems.