The following information is taken from this useful link, click on the section Performing a Factory Reset for 7941/7961 part of the 4.1.3 admin guide. Depending on your CCM version, check the admin guide for same:-
http://www.cisco.com/en/US/products/hw/phones/ps379/products_administration_guide_chapter09186a008041aefa.html#wp1031705
When you perform a factory reset of the Cisco IP Phone, the following information is erased or reset to its default value:
•CTL file-Erased
•LSC-Erased
•User configuration settings-Reset to default values
•Network configuration settings-Reset to default values
•Call histories-Erased
•Locale information-Reset to default values
•Phone application-Erased (phone recovers by loading the
term61.default.loads file or term41.default.loads file)
Before you perform a factory reset, ensure that the following conditions are met:
•The phone must be on DHCP-enabled network.
•A valid TFTP server must be set in DCHP option 150 or option 66 on the DHCP server.
•The termXX.default.loads file and the files specified in that file should be available on the TFTP server that is specified by the DHCP packet.
To perform a factory reset of a phone, follow these steps:
Procedure
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Step 1 Unplug the power cable from the phone and then plug it back in.
The phone begins its power up cycle.
Step 2 While the phone is powering up, and before the Speaker button flashes on and off,
press and hold #.
Continue to hold # until each line button flashes on and off in sequence in amber.
Step 3 Release # and press 123456789*0#.
You can press a key twice in a row, but if you press the keys out of sequence, the factory reset will not take place.
After you press these keys, the line buttons on the phone flash red and the phone goes through the factory reset process.
Do not power down the phone until it completes the factory reset process and the main screen appears.
The next procedure is for setting the 7970/7971 to Factory Default, the information is taken form this link:-
http://www.cisco.com/en/US/products/hw/phones/ps379/products_administration_guide_chapter09186a00804b0bea.html#wp1087544
Procedure
--------------------------------------------------------------------------------
Step 1 Unplug the power cable from the phone and then plug it back in.
The phone begins its power up cycle.
Step 2 While the phone is powering up, and before the Speaker button flashes on and off, press and hold #.
Continue to hold # until each line button flashes on and off in sequence in orange.
Step 3 Release # and press 123456789*0#.
You can press a key twice in a row, but if you press the keys out of sequence, the factory reset will not take place.
After you press these keys, the line buttons on the phone flash orange and then green, and the phone goes through the factory reset process. This process can take several minutes.
Do not power down the phone until it completes the factory reset process and the main screen appears.
Regards
Allan.
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