I take it your BCUSB has the old at90usb162 chip , therefore it wont detect the new SPI firmware , it is irrelevant for now , as it does not contain any new code relevant to what we are trying to do ..
What OS do you normally use ?
Try loading the 2.02 firmware on your virtual XP machine and try the erase command on that , tell me how long it takes to erase , a normal 8meg erase should be around 40-50 seconds. and check if it is all FFF