See if you have better luck using
    http://www.surveyor.com/blackfin/ldr-for-windows.zip

Make certain you haven't somehow clobbered your Matchport setup (it happens).
 
  Expert (5) -  
     for CPU performance, enter FF
     for clk?, enter 81
     change MTU Size from 1400 to 1024
     skip the rest of the options
  Channel 1 Serial (1) -  
     for Baudrate, enter -1
     for divisor, enter 2
     for flow control, enter 2
     further down, for FlushMode, enter 80
     for Pack Cntrl, enter C0
     for InterCh Time, enter 3
     skip the rest of the options
 
  Save and exit (9)

Glad to hear.
 
As regards the OV7725 vs OV9655, there is a pretty massive difference in performance once the light level drops below a fully lit room or outdoor conditions.  I like the OV7725 both for the low light characteristics as well as the faster capture speed which results in less motion artifacts.

In playing around with the firmware for my SVS, I commented out the section that receives the X to enter xmodem mode, and now cannot talk with one camera.  So, I'm trying to reflash the recovery LDR file to get back to normal.  However, following the steps in the first message, I get stuck running bfin-elf-ldr.  To wit:  
 
ksulliv@vogons:~/Robotics/robocup/surveyor/blackfin/srv$ bfin-elf-ldr -v -l srv1.ldr.recovery 169.254.0.10:10001
Loading LDR srv1.ldr.recovery ... auto detected LDR as 'BF537' compatible format
OK!
Connecting to remote target '169.254.0.10' on port '10001' ... OK!
Trying to send autobaud ... fdatasync failed: Invalid argument
OK!
Trying to read autobaud ... bfin-elf-ldr: received signal 14: timeout while sending; aborting
ksulliv@vogons:~/Robotics/robocup/surveyor/blackfin/srv$
 
 
Repeated attempts to short J1 and J2 haven't worked.  The red LED is on, and the yellow LEDs are off.  I can telnet into the Matchport, and can also access the wireless via the web.  I have not tried reflashing via serial (I suspect that will fail too since I can't get past the autobaud step.)  I'm running Ubuntu 9.10.  Any suggestions?  
 
Keith  
   

It is.  Here' the settings for Channel 1 on the Matchport:  
 
*** Channel 1
Baudrate 115200, I/F Mode 4C, Flow 00
Port 10001
Connect Mode : C0
Send '+++' in Modem Mode enabled
Show IP addr after 'RING' enabled
Auto increment source port disabled
Remote IP Adr: --- none ---, Port 00000
Disconn Mode : 00
Flush   Mode : 80
Pack Cntrl   : 00

ksulliv@vogons:~$ bfin-elf-ldr  --version  
ldr-utils-svn-1905: /usr/src/packages/BUILD/ldr-utils/ldr.c compiled Jul 14 2008
$Id: ldr.c 2654 2008-06-25 17:05:00Z vapier $
ksulliv@vogons:~$  

Thanks.  I think the problem was caused by a combination of modem settings and user error: I was shorting the pins on the wrong camera of the SVS!  Oopps.

You might try a later version of the toolchain - your version isn't the same that the above poster (and I) am running.