Okay, bit of confusion going on here....
Spektrum/JR doesn't help things out when they talk about "Failsafe" and/or "Smartsafe" since the traditional meaning of Failsafe doesn't apply.
Two issues exist; the smaller channel number rx's cannot be set to drive the servos to a predetermined position on tx signal loss with the exception of the throttle servo which can be set, all others remain at last commanded position. The bigger rx's can be set for a predetermined servo positions as Rich describes buy pulling the bind plug out after the rx's start blinking. The other thing that happens during a bind is that the rx is programmed where to put the servos when it powers up and before it links with the tx which on DSM2 systems is usually 3 to 5 seconds. So you bind your DX7/AR7000 with the controls in neutral, gear down (if retract equipted) and throttle positioned where you want it for the loss of tx signal. What happens with the gear retracting on power up is usually due to the servo travel being reversed during setup and if you don't rebind after setup, the rx will drive that servo to the other end of it's travel and the gear retracts, as soon as the rx links with the tx the gear comes back down.
It was a pretty common problem with the DX7 setups after they came out and guys with retract equipted models were having fits trying to determine why the landing gear was retracting on rx powerup and then extending a few seconds later.
ALWAYS rebind after setup and any significant programming changes.