The pressure valve is an important safety device - do not cap the discharge pipe.
You can reset the valve by means of a short red plastic lever that is attached to the body of the valve.
Get under the boiler. The pressure valve is to the far right hand side of the boiler (as you face it), about six inches above the row of five inlet / outlet copper pipes. When the valve is tripped, the lever is turned through 90 degrees and points down. Push it back up with a screwdriver or similar. Fill the system to normal operating pressure and get a loved one to check that the water is no longer gushing out of the discharge pipe on the outside of the house.
If you have continuing problems with it, get a plumber to check it.
botcher, January 2011