Yep, you were reading the wrong line. Curse your Seagate for being 3.01 and confusing you!
Looks like you've got the exact same problem as Starscream. Either way you're booting off bank 2. FlashBIOS always starts writing at the beginning of bank 1, so if you're only writing 512KB then you won't change bank 2 at all.
First thing, confirm once again that your switch cable plugs are fully seated. They can sometimes bow a bit at the middle and not make full contact. Make sure everything is straight. If no luck...
Second, try jiggling the switch a bit in the bank 1 position, maybe keep a little pressure on it while booting the box. Maybe this will get you booted at least once. Just to prove that you did get successfully flashed. If still having problems...
Third, pull your switch bank off and get yourself a multimeter. Test for a clean connection (continuity or 0 Ohms resistance) between pins 1 and 4 of the plug. Search this forum for "switch schematic" and you'll find a post I made diagramming the switch circuitry. You should be able to follow the bank 1 trace to ground. If you find your switch is truly faulty contact the vendor that you purchased it from and ask what can be done for a replacement.
If you don't care about using two banks and just want to get your mod done, you can use X2 BIOS Manager to build a 1MB BIOS out of two copies of the 5035 BIOS. Or FlashBIOS in the bank 1 slots and 5035 in bank 2. That way when you flash you will overwrite the whole chip and can then boot off of the stuck bank 2. The drawback to this is that you either won't have FlashBIOS on your chip for emergency recovery if needed, or if you do have it on there you will have problems accessing it since it is on bank 1. Do this at your own risk. I would advise trying to pinpoint the reason why you can't select bank 1, and if you find it is the switch bank try and get that replaced.
-Whoopin'
