Okay, it looks like I was mostly right. Here is a document that explains the serial debug software:
AN2140
It says that the reset vector you should be programming is located here: FBFE:FBFF
I would try writing the address of the beginning of your program here and then try it again.
AN2140 also mentions that you can put a switch on PTA7 to force it into monitor mode even with the user vector programmed. Is this switch populated on your demo board?
It also says that it will force itself into monitor mode if it detects a 0 on the Rx1 pin - indicating a non-idle state on the serial port.
Once you have your reset vector programmed, you need to use one of these methods to get back to the monitor mode so you can erase the device.
Message Edited by rhinoceroshead on 05-07-200603:11 PM