Ok, I found the following instructions. Apperently I was trying to reset the server incorrectly.
Quote:
To reset the server settings:
1 Turn the Snap Server off (as described on page 7) and
wait for all of the lights to turn off.
2 Press and hold down the Reset button. While you are
still pressing Reset, turn the Snap Server back on; wait
until both the System and Disk lights start flashing in
sync. (To press the Reset button, push a pencil point or
similar object into the reset button.)
3 Release the Reset button.
4 To select the settings you want to clear and reset, briefly
press the Reset button:
Once to clear the server's IP address.
Twice to clear the Administrator password.
Three times to clear the server's network settings.
Four times to clear all system settings.
5 Watch the Disk light and verify that the number of times
it flashes corresponds to the number of times you
pressed the Reset button. For example, if you pressed
Reset three times to clear the network settings, the
Disk light should flash three times repeatedly to
confirm the reset. If the number of flashes exceeds the
number you intended, repeat steps 4 and 5 of this
procedure.
6 When the light confirms the level of reset you intended,
press and hold down the Reset button until both the
System and Disk lights turn off, and then release the
Reset button. The server then restarts, and resets the
settings you cleared to the factory defaults
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After I did this the snap utility still cannot locate the server on the network and now the lights are blinking in tandem with power blinking once and disk blinking twice about every second.