I am assuming you are running the bootblock update from "C:\Program Files\EFILive\V8\Boot Block" in the explorer. Do not run the boot block upgrade from inside of the flashscan menu. The little checkbox in the explorer should be checked by default when you try to flash the bootloader. If it is not, you are probably trying to load firmware.
I thought the explorer automatically put mine into the correct mode to upload the new bootloader. The instructions also note not to put the flashscan into dead poll mode to updating the boot block.
I guess for a future version, would it be possible to make a more "User proof" upgrade procedure, like when you have the flash scan plugged in and the tuning tool running, have it prompt to update bootblock/firmware, so you just have to click "Yes"
The PPM files shouldn't affect your issue. This is on a much lower level. To resolve this issue, delete everything in the "config" directory, and re-extract the whole zip file again. Run EFILIVE, and there is a "format" button in the explorer under the config tab.