I had this happen and for me the solution was in the "User's Manual":
Problem: "The incline of the treadmill does not change correctly. "
Solution: "With the key in the console, press one of the incline buttons . After a few seconds, re-insert the key. The treadmill will automatically rise to the maximum incline level and then return to the minimum level. This will recalibrate the incline system."
Joel Feldman, September 2008