Sure, just seems rather complex to put something inline in the serial port. You wouldn't necessarily need to compile code on the empeg. A script should be able to do it.

You could probably bitbang a suitable UART with your Arduino that you already have couldn't you? I'm not much of an Arduino guy, but I'm pretty sure it's feasible particularly for a reasonably dedicated device.
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Christian
#40104192 120Gb (no longer in my E36 M3, won't fit the E46 M3)