We have an install with DS5000/21-button sets off a 7200 ver 4.22 where some of the phones terminal status indicators are staying lit.

It looks like the TS light - the one on the top right part of the phone - should only be lit if the phone is BUSY or OFF-HOOK. These phones are not.

What gives? What are we missing here?

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x206's TS light is lit solid and not 'busy' + the system doesn't see it as busy ...

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While I can't identify the "real" solution, I would unplug the offending phones, power down, wait 30 seconds and power up.

Then plug in one phone and see if the light comes up. Who knows what screwy things make the processor go nuts, but rebooting without those phone plugged in is the first thing I would do.

If they still show up as busy then you have bigger problems than a temporary glitch.
Another option to try is in 6.3.5 - port clear. Try clearing the port (use DB Initial) - which will take just that 1 port back to the default settings. You might have to set up station keys or forwarding again after, but it takes the port/set back to default settings. I've used that to clear flakey issues from both analog and digital ports.
Well I did a VM halt, system halt, then reset the system remotely - will see if that helped. If not I'll try the 6.3.5 port clear, thanks.
Reset cleared it.
Problem came back - its the customer playing with a user's guide. Dialing the 'message' softkey after ringing various phones on intercom. Of course, that leaves a message - no message button (only VMmsg) lights the TSI.
Also, the 1st post was not accurate. If you place the phone in DND the status light will stay on as well. Not Flash. Also, do they use station pairing? I believe if one phone is off hook, the other phone will apear to be in use as well.
The DND thing flashing is out of the user guide via that pic. I just tried it here in our office and it flashes. Maybe different with SW level. Ours is 4.222
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