Could be the cable.
Serial didn't work through emplode either.
BUT, doing an upgrade, did find the unit using COM1. All seemed to be going well (I was trying with 2.0b3 since I can't download 1.03 right now) and the new logo appeared. However, when it got to the "Selecting Pump" portion, no progress ever appeared. It just sat there. I cancelled and eventually a No hard disk found message came up. This message doesn't come up with the 1.02 software that was on the unit before (I also put 1.02 back and no message.)
I won't be so concerned with the warranty when I add another drive, as soon as I know everything is working 100% from the beginning. Right now I am concerned. If there's no magic seal then I'll take a look inside. And if it's not the drive I'll have to seek warranty help.
I knew sliding under the radar for customs charges was somehow going to end up having repercussions somewhere else... :)