I've had the exact same problem(with the same vcr) for a month or so now. I figured my best bet, short of a repair shop or new vcr, was unplugging it for a minute but I was quite paranoid about never being able to set the clock or timer-records again. This wonderful page gave me confidence to give it a shot, and it worked.
unplug it for a minute and plug it back in.
Geoff, April 2006