Ok, I've made some progress.
The problem is within the Signcut-X2 software. Well, at least the biggest problem.
I switched to my laptop, since I had no drivers installed on it.
I installed the included Signblazer Elements software.
I tried the parallel port, and that didn't work. I tried the serial port, and that worked. Woohoo! My first actual output from a computer. Then I installed SignCut-X2, and I get the same problem.
So, I switched back to my main PC, and same results. Signblaster works, but SignCut-X2 does not.
In SignBlazer, I am using the following settings:
Refine MH365
Com1: 9600 8 N 1,
flow control: hardware
In SignCut-X2, I have tried the same settings, except under the flow control settings there are four checkboxes: RTS, CTS, DTR, and DSR. By default, all but the DSR were selected.
I have tried a few different combinations of these checkboxes, and I either get nothing, or I get the spit the paper out and continuously feed forever deal.
Any idea what these settings need to be, or what may be causing my problem? The fact that it's working fine in Signblazer, and not in SignCut is a good sign. Now I just have to figure this out, because I use Adobe Illustrator, and I need SignCut to take the exported images.
Here are screenshots of the configs for SignBlazer and SignCut:
Signblazer Elements:


SignCut-X2:

thanks,
Frank