HC08 CodeWarrior v5.7: "Erasing. \Can't Communicate with target!"

I am attempting to load code into a MC68HC908QT2 using the "Monitor
Mode Circuit (External Clock With High Voltage)" shown in fig 15-11 of
data sheet MCHC908QY4/D. My clock frequency is 1.6MHz instead of the
9.8304MHz shown in the data sheet, but I have adjusted the baud rate
accordingly.

I had been successfully using a previous CodeWarrior Version running on
Windows 98 with this exact same hardware and target software.
Unfortunately this setup is no longer available and I am now trying to
use a newer version of CodeWarrior running on XP.

PROBLEM DETAILS:

CODEWARRIOR SETUP:
"Mon08 Interface":
Menu: Component\ Set Connection: "Processor HC08", "Mon08 Interface"
For "Interface Details" I have selected "Class 3 (Custom) on COM1 at
1563 Baud (User Specified)".

MESSAGES DISPLAYED WHEN ATTEMPTING TO LOAD CODE:
"Target has been RESET and is active"
"Loading programming algorithm...Done."
CMD>EM "Loading programming algorithm routine...Done."
"Erasing. \Can't Communicate with target!
Check power, connections..."
"ERROR 99 during script!"

My power supply / and Vtest is solid and clean, serial comm a clean
0-5V.

Thanks for taking the time to read this. Any suggestions would be
greatly appreciated.

Regards,
Sean Harnett