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1. make sure you dont have a dvd in the player 2. close player and press menu,1,9 you should see a menu; line 3 from the bottom it will say region selection then put your region or (0 for free zone)
3. now insert disk and press close and your movie should play.
Pal output will only work when it is plugged into a pal tv. The only way you can restore is to use the remote to put the settings back to ntsc without using the display. That should work. If you don't have a pal tv you should never change devices to run on it, because it can damage your tv set. The scanning lines are very different between the two systems.
After checking today to see no one offered any suggestions - I solved the problem the hard way - I went into settings and although the screen rolled, I was finally able to click onto the ntsc setting after about a half hour of tries and once I clicked it, my screen returned to normal -- i was then able to enter the code that made the player an all region player and was happily able to play a pal dvd I received recently. The procedure was simple -- offered by a European Cyberhome user -- the company is in bankruptcy so you cannot gt help from them. Note - my Cyberhome dvr is 1500- not 1600 as you listed it.
You might want to reset to factory defaults, but there is an error in the manual. In order to reset to factory defaults, turn on (with no disc inside), DO NOT OPEN THE DISC TRAY, just press the stop button on the player for 5 seconds.