I initialy had the problem with my second hand mark1.. i know it wasnt the serial cable, as the bloke who had it before me had it all working fine.

After about 20 seconds of fiddleing, i turned off the ethernet support (click on the ethernet bit Connection -> Look for empeg on...) and only had serial enabled. Worked fine. Thats in win2k, 1.01.

Might help, worth a try.