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You're absolutely sure that the serial port on the PC that your cable is plugged into is indeed COM1, right? Not COM2 or anything like that?
Is it possible that the serial port is disabled in your BIOS? (Then again, if it were, Windows wouldn't see it...)
Are you making sure not to start TeraTerm until your Dreamcast is turned on? (Doesn't matter if you already booted the serial slave CD or not)
I don't know what else it can be. Checked my TeraTerm settings against yours, and they all match 100% - except I use VT102 as the terminal ID.
The ONLY logical explanation that's left after everything else is exhausted is that the cable is fu*ked up. I hope not...
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