Thanks for your reply and I was able to get the firmware from another source which fixed the issue. The phone is now working flawlessly ☺.

I am in the same boat here.  I recently purchased a 7936 off ebay and the phone is going to the data vlan and cannot see the TFTP server on CM 8.x however I can ping it from the phone.  I tried upgrading the firmware directly from 3.2(0) to 3.2(20) ...