After failing to connect with 2 different dev boards using a new ULINK2, I saw a recent thread where someone got one with a solder drop on it. I opened up my ULINK2 and there is a HUGE solder drop that entirely covers 4 pins on one of the connectors. There is no way it would get past even a quick visual check of the board. And obviously the product is not given a functional test as this board could not pass.
If there are more people out there with this problem, post when you bought your ULINK2, so Keil will know about it. Mine was shipped on 12/18/2006.