Thanks for the compliments

I will try to reproduce at my place.
But the first thing I see is that a 8mb cartridge is detected, where as the file is for a 1mb cartridge.
If that is incorrect, there may be an issue with your 130xe.
The machine, is it original, or are there any memory extensions or system alterations in place?
Grtz,
Sijmen.
[edit]
No, can't reproduce.
When you use a 8mb cartridge, it starts the program-cycle anyway (I don't get your lockup-screen).
Then when it tries to flash bank $10 it errors out (correct, since there is no data to read).
Do you have another machine or do you have the atarimax-programmer?
[2nd edit]
Did you remove the flasher-disk?
Basic XE allows diskboot and when the flasher still is inside, it will re-run for ever.
Just remove the disk and boot the cartridge with nothing powered on or attached to the machine.