when you get to part 3 you're still holding down the brake pedal and still pushing down on the cruise control lever. (the entire lever not the on/off button).
at part 3 u release both the pedal and the level.
this does work, and only works for the 8g. however, some trouble codes return after they have been reset. for example the auto tranny codes that come on from the maual swap. i think it only resets minor codes. if you do it right and the SES light is still on, you have a major problem with the engine and should check the light with a scan tool.
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