I'll take your questions in order.

The firmware update does not automatically clear your settings, as Scott of Outlaw confirmewd here:

http://ubb.outlawaudio.com/ubb/ultimatebb.php?/ubb/get_topic/f/40/t/000151.html#000001

Pressing menu-mute on the front panel will display your current firmware but I do not believe there ia a way to display your current firmware without a display.

The menu-mute reset clears all your settings. The paperclip reset is more like a reboot and does not clear anything.

Hope this helps,
Tony.