The problem isn't getting PPP-over-USB to work on the Empeg (that's simply a question of compiling a new kernel for the Empeg with the proper features enabled), the problem is finding a driver for the Windows side of things. I don't think such an animal exists.

If you are going to be stuck with a serial connection, and your only goal is to recover files, then don't bother with Displayserver. Just use the zmodem file transfer protocol to send them via hyperterminal, like Frank said.

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Tony Fabris