Okay, here's what I did ... and what happened.
The subject phone was an old Samsung Captivate (SGH-i897) that was rooted and running CM10.1. No sim card. Made a nandroid backup and copied to my laptop.
First I made sure that ADM could see it and that remote wipe was activated. Then I turned off WiFi and shut off the phone.
Once the phone was off, i issued the ADM command to erase. Next I turned off my home WiFi and made sure there were no open wifi connections within range.
I turned the phone back on and it booted normally. No network connections. At this point I could have copied all my files off via USB or used any backup apps assuming they were already installed.
I turned WiFi on on the phone and still nothing because my home WiFi was disabled and it couldn't connect to other networks. I then enabled my home WiFi and as soon as the phone connected, I see a message "erasing SD card" and then the phone rebooted, performing a factory reset. When it rebooted all internal storage was wiped clean, including the nandroid.
Now, here's the interesting part. Even though it said it was erasing the sd card, it only meant the internal /sdcard partition, because I had an external SD card with some test files on it that were still there after the reset.
And the really REALLY interesting part, I copied the nandroid backup files that I made BEFORE issuing the ADM lock and erase command back to the the phone and restored them. When the phone booted and connected to WiFi, it reset itself again.
Soooo, i copied and restored the nandroid one more time and as soon as the lockscreen showed up, I was able to swipe down and disable WiFi. All good so far. And when I re-enabled wifi on the phone and it connected, it didn't reset. The odd thing now is that the play store doesn't see it, so I may have to reset it anyway to get ADM back.