To add another bit of helpful info: If using Eclipse and you want to clear the local datastore, look for this console msg:
INFO: Local Datastore initialized:
Storage: C:\Users\eric\workspace\.metadata\.plugins\org.eclipse.wst.server.core\tmp0\appname\WEB-INF\appengine-generated\local_db.bin
It only shows up after you do something to force datastore initialization, e.g. which could be refreshing the entity list on the admin page. Then stop your server and delete the file, and when you restart you should see:
INFO: The backing store, C:\Users\eric\workspace\.metadata\.plugins\org.eclipse.wst.server.core\tmp0\appname\WEB-INF\appengine-generated\local_db.bin, does not exist. It will be created.