FWIW, my workshop machine seems to have had some sort of port issue in XP, but now that it's working, I can confirm that everything works as Max explained (of course <g>). The latest version of GCS on the download page is 1.3.B2, and he's cleaned that up to take away the confusion of where to flash, so there's no longer a flash option under the ESC32. I'd suggest starting with that version just so we're all on the same page.
I'm guessing you have another ESC32? If so, you might try a different one just in case the first one has a problem.
Also, take a close look at the FTDI connector on the board. The pins are always too long for the pads that they sit on, and I usually clip them off enough to keep them from overhanging the pads. I'd look closely to see if maybe one of those overhanging pins is shorting to another trace, since that could easily explain your communications issue.
Worst case, maybe you can send it to someone to test. If you're in the US, I'd be happy to look at it, though you can probably find more qualified people
Cheers,
Rusty