Death. Of the chip.
In these two examples (both TMS27040), certain random bits are blanked out (they were not the same in both instances) and as a result the images that were supposed to be on the chips did not verify against known good images. But since the bits were blanked, both could be erased and pass a blank check. However, when writing the chips again, the blanked bits could not be set and error out in the same place every time.
Both of these are heading for the trash.
Remember, line the notch of the chip up with the notch on the socket you are installing it in.
The board OTOH seems to be fine. So all you need is another good chip.
You have been warned.
viperrwk