I can't tell what's wrong with your unit without taking a look or seeing the hyperterminal output, but if the red LED was ever flashing that would possibly indicate a power issue as it should just turn on and stay on.

You might want to send it to someone experienced with sick Empegs as Mark suggested. Mark is one option and is located in Canada. Eutronix is another and is located in the US. They are totally separate entities.

Stu