Neither does PAP2 allow you to do a hardware reset through a hidden
switch accessible to a pencil nor allow you to punch in FACTRESET from
your telephone pluged into it.

This is how I did a reset on my PAP2:
I opened the box to find a two pin jumper for three pins available on
the board. I kept the device ON, (I used NONSTATIC gloves) pluged off
the jumper from the second and the third pins and connected it to the
first and second pins. Then I punched in "****" and "FACTRESET" and
then "1" on the telephone connected to the PAP2. It announced that it
did RESET successfully. I then switched of the PAP2 and reverted the
jumper back to its second and third pin position and closed the box. I
had the PAP2 unlocked!

Goodluck!

Sekhar.