I was in the same situation that "Tom_Cody" was in regarding TEST MODE: LINE MODE in the gamepad.
Nintendo emailed a shipping label so I could send the gamepad back to them.
Instead, I fixed it :D
The game pad was left in factory mode. I don't recall which menu it was (I really wasn't expecting to fix it ... ), but under one of the menus (either Flash Menu, UIC Menu or Misc Menu) there are two sub menus. One for "Ship Mode off" and "Ship Mode On"
Select, using D-pad (not thumbstick) "Ship On" or whatever it says. It'll be obvious, then "A". Turn off the gamepad, then turn it back on.
My gamepad is now on, working as expected, and the console is now updating.