I've set up a Propeller DIP40 on a breadboard, along with an ft232rl circuit based on the Prop Plug for communication. I've connected 100nF bypass capacitors on all VCC sources, as well as 10uF caps on the source regulator. There is also an EEPROM for storing the program, along with a 20pF, 5MHz crystal oscillator as an external clock.
Everything seems to be working fine; the Propeller is successfully detected by Propeller Tool and I can upload programs compiled using both it and SimpleIDE. When I upload the downloadable blinking light Spin program using Propeller Tool, the light blinks as expected, so I don't believe there is an issue with the crystal or the Propeller. However, when I attempt to run the SimpleIDE test program which displays "Hello!!!" in the terminal, nothing will display. I've even tried adding a pause of 2 seconds to wait for the terminal display to load, as well as compiling and running other terminal I/O programs, with no success.
So far, I've tried changing the board type to Generic and changing the baud rate, but those don't work either. For some reason the terminal doesn't seem to respond to anything. I'm using Windows 10, if that changes anything.