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how can we delete all the orders from admin panel in magento. Please help me as I need to do this safely very soon before launch of client site.

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This is the sql I use to do the job. I strongly recommend you to check this on a demo site and ensure you place some demo orders thereafter to make sure no order contents further that point after you execute that sql is messed up. The order clearing process wither with sql, or plugin is a risky process.

   SET FOREIGN_KEY_CHECKS=0;
TRUNCATE `sales_flat_creditmemo`;
TRUNCATE `sales_flat_creditmemo_comment`;
TRUNCATE `sales_flat_creditmemo_grid`;
TRUNCATE `sales_flat_creditmemo_item`;
TRUNCATE `sales_flat_invoice`;
TRUNCATE `sales_flat_invoice_comment`;
TRUNCATE `sales_flat_invoice_grid`;
TRUNCATE `sales_flat_invoice_item`;
TRUNCATE `sales_flat_order`;
TRUNCATE `sales_flat_order_address`;
TRUNCATE `sales_flat_order_grid`;
TRUNCATE `sales_flat_order_item`;
TRUNCATE `sales_flat_order_payment`;
TRUNCATE `sales_flat_order_status_history`;
TRUNCATE `sales_flat_quote`;
TRUNCATE `sales_flat_quote_address`;
TRUNCATE `sales_flat_quote_address_item`;
TRUNCATE `sales_flat_quote_item`;
TRUNCATE `sales_flat_quote_item_option`;
TRUNCATE `sales_flat_quote_payment`;
TRUNCATE `sales_flat_quote_shipping_rate`;
TRUNCATE `sales_flat_shipment`;
TRUNCATE `sales_flat_shipment_comment`;
TRUNCATE `sales_flat_shipment_grid`;
TRUNCATE `sales_flat_shipment_item`;
TRUNCATE `sales_flat_shipment_track`;
TRUNCATE `sales_invoiced_aggregated`;
TRUNCATE `sales_invoiced_aggregated_order`;
TRUNCATE `sales_payment_transaction`;
TRUNCATE `sales_order_aggregated_created`;
TRUNCATE `sendfriend_log`;
TRUNCATE `tag`;
TRUNCATE `tag_relation`;
TRUNCATE `tag_summary`;
TRUNCATE `wishlist`;
TRUNCATE `log_quote`;
TRUNCATE `report_event`;
ALTER TABLE `sales_flat_creditmemo` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_creditmemo_comment` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_creditmemo_grid` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_creditmemo_item` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_invoice` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_invoice_comment` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_invoice_grid` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_invoice_item` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_order` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_order_address` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_order_grid` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_order_item` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_order_payment` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_order_status_history` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote_address` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote_address_item` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote_item` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote_item_option` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote_payment` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_quote_shipping_rate` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_shipment` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_shipment_comment` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_shipment_grid` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_shipment_item` AUTO_INCREMENT=1;
ALTER TABLE `sales_flat_shipment_track` AUTO_INCREMENT=1;
ALTER TABLE `sales_invoiced_aggregated` AUTO_INCREMENT=1;
ALTER TABLE `sales_invoiced_aggregated_order` AUTO_INCREMENT=1;
ALTER TABLE `sales_payment_transaction` AUTO_INCREMENT=1;
ALTER TABLE `sales_order_aggregated_created` AUTO_INCREMENT=1;
ALTER TABLE `sendfriend_log` AUTO_INCREMENT=1;
ALTER TABLE `tag` AUTO_INCREMENT=1;
ALTER TABLE `tag_relation` AUTO_INCREMENT=1;
ALTER TABLE `tag_summary` AUTO_INCREMENT=1;
ALTER TABLE `wishlist` AUTO_INCREMENT=1;
ALTER TABLE `log_quote` AUTO_INCREMENT=1;
ALTER TABLE `report_event` AUTO_INCREMENT=1;
SET FOREIGN_KEY_CHECKS=1;

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