One more addition that should also be noted that is seldom mentioned about the way the AXE027 hardware is configured, it has two pulldown resistors one on the Rx line and one on Tx line. This is important when receiving data from the Picaxe because without it the receiving device will detect a first byte data transmission that was not sent by the Picaxe. I've also had to add a 10K pulldown resistor to my ERF Rx line to stop this unwanted first byte data transmission occuring. This will show up on the Serial Terminal as a non printable character.
I have used FTDI breakout board with the same resistor setup as the AXE027 cable without anyother download circuitry attached and powering the Picaxe through the USB port. But first you must reprogram the FTDI using FT_Prog to invert the Rx and Tx signal lines.