khttpd: sock_accept: accept() failed, rc=-104

What's your refresh interval set at?

Result code 104 is ECONNRESET which is "Connecion Reset by Peer." Based on that, it looks to me like your refresh interval is probably set pretty low, and the khttpd is sending its output, but the refresh interval is hit and the browser closes the connection and reopens another one to refresh. Try increasing the refresh interval and see if that helps.

Not sure what Hyperterminal would have to do with this scenario, though.