is this my reset snippet and if not where should this go.
The reset would simply be:
fromKeypad = 0;
If you put byte in front of it, you are defining a new (local) variable with the same name as a global variable, which is NOT what you want to do.
As to where to put it, that depends. The '*' case does something. The '#' case does something. Either or both of them are good candidates. More likely the '#' case.