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I don't know if there is a factory reset...don't think so. There is an LED and KEY TEST, from the Fostex site:

Fostex Support > Knowledge Base > Search Results > LED and Key Test

Topic: "LED and Key Test". Last Updated 03/22/2005 Title LED and Key Test Description LED and Key Test Content LED Test 1. While you are in normal display, press SHIFT and STOP and Chanel 9 buttons (3 buttons) at the same time. 2. You should see all LEDs are lit on the panel. Channel 1-16, EFF1 EFF2, INPUT SEL,STOP, REWIND, F.FWD buttons should be Orange. MASTER, BUSS SOURCE, VARI PITCH, PLAY should be Green. BUSS REC TRK, DIRECT REC TRK, STORE, RECORD FADER ADJ buttons should be Red Other buttons should be Off 3. To exit from this test mode, press SHIFT and STOP and MASTER Buttons at the same time. KEY Test If you want to check whether the specific key is working properly or not, 1. Enter into the LED Test mode above, that is SHIFT+STOP+CH 9. 2. Press hold the SHIFT key and a key of the question, for example if you want to check a DIRECT REC TRACK button, press SHIFT and DIRECT REC TRACK. 3. You should see in the display. 4. Above display indicates Total 2 buttons are press at the same time, and they are DIRECT REC TRACK and SHIFT buttons, "Error" indicates nothing. 5. If you don't see the buttons you pressed in this display, may be switch(es) behind the button is broken or some other hardware problem. 6. When you are done, press SHIFT and STOP and MASTER buttons at the same time. 7. Press the Key in question with the SHIFT (actually with any key) and check the LCD display.

So this should tell you if all of the buttons and lights are working properly...

Otherwise, (hopefully you can get there!) just go into "Setup", at the end of the list, and choose "Disk Format". Let the machine do it's stuff overnight, shut it down and restart, and all should be well. It's good to do a full format every now and then, since there is no cleanup or defragmenting utility.

Hope this helps!