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[Reply #15 on:]

I guess this tells me the FTDI converter is OK

Yes.

and the processor is toast?

I have no idea.  That is a very strange way to fail.  However, if I were in your shoes, I'd start shopping for a replacement.

No. I was unsuccessful with the PicStep.

From what I can tell, the PIC-STEP uses RS-232 for communications.  If that is true, the voltage levels are high enough to damage the Arduino.  Your Arduino can act as a "serial converter" but only a "TTL level serial converter" not an "RS-232 serial converter".

[Reply #16 on:]

From what I can tell, the PIC-STEP uses RS-232 for communications.  If that is true, the voltage levels are high enough to damage the Arduino.  Your Arduino can act as a "serial converter" but only a "TTL level serial converter" not an "RS-232 serial converter".

I wasn't using the Pic-Step board, only the chip. So I was going TTL- TTL not TTL- RS-232.
But for now I will get a new Arduino and work up a proper board for the Pic-Step with dedicated serial convertor while I try to figure out what went wrong.