Use query below. Works like a charm! =)
TRUNCATE TABLE `catalog_product_bundle_option`;
TRUNCATE TABLE `catalog_product_bundle_option_value`;
TRUNCATE TABLE `catalog_product_bundle_selection`;
TRUNCATE TABLE `catalog_product_entity_datetime`;
TRUNCATE TABLE `catalog_product_entity_decimal`;
TRUNCATE TABLE `catalog_product_entity_gallery`;
TRUNCATE TABLE `catalog_product_entity_int`;
TRUNCATE TABLE `catalog_product_entity_media_gallery`;
TRUNCATE TABLE `catalog_product_entity_media_gallery_value`;
TRUNCATE TABLE `catalog_product_entity_text`;
TRUNCATE TABLE `catalog_product_entity_tier_price`;
TRUNCATE TABLE `catalog_product_entity_varchar`;
TRUNCATE TABLE `catalog_product_link`;
TRUNCATE TABLE `catalog_product_link_attribute`;
TRUNCATE TABLE `catalog_product_link_attribute_decimal`;
TRUNCATE TABLE `catalog_product_link_attribute_int`;
TRUNCATE TABLE `catalog_product_link_attribute_varchar`;
TRUNCATE TABLE `catalog_product_link_type`;
TRUNCATE TABLE `catalog_product_option`;
TRUNCATE TABLE `catalog_product_option_price`;
TRUNCATE TABLE `catalog_product_option_title`;
TRUNCATE TABLE `catalog_product_option_type_price`;
TRUNCATE TABLE `catalog_product_option_type_title`;
TRUNCATE TABLE `catalog_product_option_type_value`;
TRUNCATE TABLE `catalog_product_super_attribute`;
TRUNCATE TABLE `catalog_product_super_attribute_label`;
TRUNCATE TABLE `catalog_product_super_attribute_pricing`;
TRUNCATE TABLE `catalog_product_super_link`;
TRUNCATE TABLE `catalog_product_enabled_index`;
TRUNCATE TABLE `catalog_product_website`;
TRUNCATE TABLE `catalog_product_entity`;
TRUNCATE TABLE `cataloginventory_stock`;
TRUNCATE TABLE `cataloginventory_stock_item`;
TRUNCATE TABLE `cataloginventory_stock_status`;
TRUNCATE TABLE `catalog_category_entity`;
TRUNCATE TABLE `catalog_category_entity_datetime`;
TRUNCATE TABLE `catalog_category_entity_decimal`;
TRUNCATE TABLE `catalog_category_entity_int`;
TRUNCATE TABLE `catalog_category_entity_text`;
TRUNCATE TABLE `catalog_category_entity_varchar`;
TRUNCATE TABLE `catalog_category_product`;
TRUNCATE TABLE `catalog_category_product_index`;
INSERT INTO `catalog_category_entity` (`entity_id`, `entity_type_id`, `attribute_set_id`, `parent_id`, `created_at`, `updated_at`, `path`, `position`, `level`, `children_count`) VALUES (1, 3, 0, 0, '2012-06-17 22:20:47', '2012-06-17 22:20:47', '1', 0, 0, 1), (2, 3, 3, 1, '2012-06-17 22:20:47', '2012-06-17 22:20:47', '1/2', 1, 1, 0);
INSERT INTO `catalog_category_entity_int` (`value_id`, `entity_type_id`, `attribute_id`, `store_id`, `entity_id`, `value`) VALUES (1, 3, 67, 0, 1, 1), (2, 3, 67, 1, 1, 1), (3, 3, 42, 0, 2, 1), (4, 3, 67, 0, 2, 1), (5, 3, 42, 1, 2, 1), (6, 3, 67, 1, 2, 1);
INSERT INTO `catalog_category_entity_varchar` (`value_id`, `entity_type_id`, `attribute_id`, `store_id`, `entity_id`, `value`) VALUES (1, 3, 41, 0, 1, 'Root Catalog'), (2, 3, 41, 1, 1, 'Root Catalog'), (3, 3, 43, 1, 1, 'root-catalog'), (4, 3, 41, 0, 2, 'Default Category'), (5, 3, 41, 1, 2, 'Default Category'), (6, 3, 49, 1, 2, 'PRODUCTS'), (7, 3, 43, 1, 2, 'default-category');
INSERT INTO `catalog_product_link_type` (`link_type_id`, `code`) VALUES (1, 'relation'), (3, 'super'), (4, 'up_sell'), (5, 'cross_sell');
INSERT INTO `catalog_product_link_attribute` (`product_link_attribute_id`, `link_type_id`, `product_link_attribute_code`, `data_type`) VALUES (1, 1, 'position', 'int'), (2, 3, 'position', 'int'), (3, 3, 'qty', 'decimal'), (4, 4, 'position', 'int'), (5, 5, 'position', 'int');
INSERT INTO `cataloginventory_stock` (`stock_id`, `stock_name`) VALUES (1, 'Default');