>is it possible when auto registering phones to set the pc port to disable as default?
No
>Can the unlock sequence of **# be changed?
No
>I'm planning on upgrading my 7940 phones to the latest firmware; has anyone had any problems installing it and/or is it a good idea to test it in a lab environment first?
I have had good experience with the 408 load, but testing is always a good idea to deploy it on a couple of production phones first before rolling it out system wide.