I don't think the AP assigns itself the address of 10.0.0.1 unless it goes into TFTP auto-transfer mode (for lack of a better phrase). You have two options: you can run the auto mode, or you can do it manually from AP mode.
Configure a TFTP server/PC to use the address 10.0.0.2 Place a 1240 autonomous image in the TFTP root directory Rename the file "c1240-k9w7-tar.default" Connect the PC to the AP Turn the AP off, then power it back on while holding the MODE button Release the button once the AP LEDs turn red (~20 seconds)
Let me know if that works, and if it doesn't I can guide you through the manual mode. That hopefully won't be necessary, though!