Hi Peterson,
The method using 123456789*0# does not work for doing a factory reset on a 7960. Try power cycling the phone first and then if you need to do a factory reset follow this method;
Reset the 7940 and 7960 IP Phones to the Factory Default
Complete these steps:
Go to the main Date/Time window.
Press **# to unlock Network Configuration on the phone.
Press Settings.
The Network Configuration lock symbol must be unlocked. If not, exit to the main window and press ** # again.
Press 3 on the keypad (or scroll down) for Network Configuration.
Press 33 on the keypad (or scroll down) to Erase Configuration.
Press softkey Yes.
Press softkey Save.
The phone must now be reset.
From this doc;
http://www.cisco.com/en/US/products/hw/phones/ps379/products_tech_note09186a00800941bb.shtml
Hope this helps!
Rob
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