any luck ... with HyperTerminal?
The BLU manual says:
NOTE: HyperTerminal won't work for bootstrapping as it mangles CR/LF combinations!
Which seems sufficiently specific that it might do an xmodem transfer ok, but it could also mean it was a non-starter and so wasn't considered worth testing -- sorry I don't recall.
Given no progress in either direction, I'd guess it is a handshaking issue.
In any case, trying an alternative may be informative.
Good luck!
edit:
This post from Ray implies that HyperTerminal could work, but doesn't confirm he tested it.
edit 2:
In a 2007-02-01 email exchange with Ray there is this comment:
HyperTerminal rejects the data UNLESS you wait until a couple of timeout failures pass; whence it switches from CRC to checksum; if you start sending then it works ok.
It may be that was before BLU understood CRC, but it seems worth trying.