You don't see anything at all with Hyperterminal connected and the remote rebooting?

The one catch is that, if I remember correctly, when you cancel a file update the remote usually shows the logo screen for a second and THEN reboots. The flickering screen and instant reboot I've only seen when the battery has failed. It could be that attempting to write to the memory at such low battery power ended up randomly corrupting something more important to the boot process.