I have a 1242AG AP that I need to reset to factory defaults. I have followed the procedures in the Cisco document (holding the mode button, etc.), but every time the AP still boots back into a config. I've held down the mode button to take the AP to the boot menu, to manually delete the config file, and there is no config file listed in the flash.
I think this AP might have an LWAPP load, and along the way I need to convert it back to autonomous, but all of the documentation for converting the AP that i can find pre-suppose that you have access to the CLI or web interface. Which, since i can't password reset the AP, I can't get that far.
You can tell if the AP is lightweight by the model number... LAP1242 unless it was converted, then you will see the rcv image during bootup... Post your console output and we can tell you if its ios or not.