Well I did a clean install of XP Pro SP2 on a new drive installed IG4 ONLY, I then used my buddies Pharos GPS360 USB GPS and all is working great. I did install the correct drivers for the USB GPS first (PL2303). So I am pleased it is working fine. This is telling me it is a driver issue with the serial port unit. So I will just order a new USB unit and be done with it.
Is the Pharos GPS-500 unit a decent one? It runs about 55 bucks.