Dear Pramad,
The symptoms you describe are usually caused by a COP timeout or Illegal instruction reset. Judging by the frequency I suspect the latter. Holding BKGD low during power-on causes the device to enter BDM mode disabling the COP and instruction execution. This can occur if the chip is blank or programmed incorrectly. Once programmed it usually isn't a problem.
I would expect that the P&E BDM would be able to to do the same thing (i.e. hold BKGD low) while prompting you to cycle the target power.
Does the P&E BDM work with other chips?
If so try the following sequence:
Hold BKGD low while powering on (use a 100R resistor if it works to avoid damaging the BDM).
Connect the P&E BDM.
Release the BKGD pin.
See if the BDM can connect now.
bye
Message Edited by pgo on 2009-10-29 05:11 PM