A 3102 tel runing NBX Code will : 1. Boot up and arp out at layer2 for an NCP . If it gets an answer , then it continues on with the discovery process If it does nto get an answer , It will revert to looking for a DHCP server in the layer 2 subnet with Option 184 . If it does nto get an answer , then it will use the static IP settings in the tel that cna be manually added . If all of the above fail , then the plus sign will spin and say waiting for NCP . What you describe is all normal as it cannot boot to layer 2 , maybe the other code is preventing it form happening and it does not know any layer 3 info . After you reset to defaults the tel will arp out on factory code , then after connecting , upgrade to whatever code the NCP is running and reboot the device after downlaoding it .