Some hopefully constructive commentary:
1. Second line form top:
Before proceeding; consider uninstalling and the
n downloading/installing the most current version of the Picaxe PE.
2. Selecting the PICAXE:
last box (RHS) should that be
40X(2)
3. And why have the X1 and X2 box with the last digit in brackets. Almost looks like a reference to a sub note.
4. To better cover the programming connector, make reference to making sure the correct pins are used with a switched type stereo connector socket.
Has be a trap in the past for some plus in a very recent thread
See pg.16 of AXE027 datasheet for the correct terminal connections to the DL socket when using the USB AXE027 cable.
IMHO page 36 in PICAXE Manual 1 is a better diagram (albeit not clear if it is the inner or outer connector at the rear to use but bridging them as per the diagram will work.
AXE027 cable already terminated correctly - it is getting the PICAXE socket wired correctly that can be the issue.