That's really weird, have you tried pointing it at NothinG's pool just as a control variable?
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ERROR: BitcoinMiner : proof-of-work not meeting target
askfor tx 23645e1ed55eecbbbefe 1346818855000000
askfor tx 3f5f16ab087c4254e877 0
sending getdata: tx 3f5f16ab087c4254e877
******* exception encountered *******
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_Z13LogStackTracev+0x45)[0x55c235]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_ZN11CDataStream4readEPci+0xcd)[0x466f3d]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_Z16Unserialize_implI11CDataStream5CTxInSaIS1_EEvRT_RSt6vectorIT0_T1_EiiRKN5boost17integral_constantIbLb0EEE+0x270)[0x4e4270]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_Z11UnserializeI11CDataStream12CTransactionEvRT_RT0_li+0x66)[0x4e46a6]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind[0x4c6883]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_Z15ProcessMessagesP5CNode+0x5b9)[0x4c84e9]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_Z21ThreadMessageHandler2Pv+0x139)[0x4e8099]
/usr/src/ppcoin-0.1.0ppc-linux/src/src/ppcoind(_Z20ThreadMessageHandlerPv+0x42)[0x4e8272]
/lib/libpthread.so.0(+0x69ca)[0x7fe350c799ca]
/lib/libc.so.6(clone+0x6d)[0x7fe350228cdd]
ProcessMessages(tx, 227 bytes) : Exception 'CDataStream::read() : end of data' caught, normally caused by a message being shorter than its stated length
ProcessMessage(tx, 227 bytes) FAILED
askfor tx 3f5f16ab087c4254e877 1346818857000000
ERROR: BitcoinMiner : proof-of-work not meeting target
askfor tx f70a1ea1f3056c76c20f 0
sending getdata: tx f70a1ea1f3056c76c20f
ProcessSyncCheckpoint: sync-checkpoint at 00000000000a36a734e199b2b87850e7c272aa89ea43d8faf049e74a8f3a1ab2
getblocks -1 to 00000000000000000000 limit 500
Added 1 addresses from 188.165.73.215: 9 tried, 9122 new
Added 1 addresses from 72.14.191.28: 9 tried, 9122 new
Added 1 addresses from 99.119.197.208: 9 tried, 9122 new
Added 1 addresses from 89.29.69.214: 9 tried, 9122 new
Added 1 addresses from 72.14.191.28: 9 tried, 9123 new
Added 1 addresses from 89.29.69.214: 9 tried, 9123 new
Added 1 addresses from 99.119.197.208: 9 tried, 9123 new
Added 1 addresses from 188.165.73.215: 9 tried, 9123 new
Added 1 addresses from 89.29.69.214: 9 tried, 9123 new
Added 1 addresses from 72.14.191.28: 9 tried, 9123 new
Added 1 addresses from 46.19.139.68: 9 tried, 9124 new
Added 1 addresses from 150.140.159.226: 9 tried, 9124 new
Added 1 addresses from 202.9.106.22: 9 tried, 9123 new
Added 1 addresses from 188.165.73.215: 9 tried, 9123 new
Added 1 addresses from 72.14.191.28: 9 tried, 9123 new
Added 1 addresses from 46.19.139.68: 9 tried, 9124 new
ERROR: BitcoinMiner : proof-of-work not meeting target
Added 1 addresses from 150.140.159.226: 9 tried, 9125 new
Added 1 addresses from 188.165.73.215: 9 tried, 9126 new
Added 1 addresses from 89.29.69.214: 9 tried, 9125 new
Added 1 addresses from 89.29.69.214: 9 tried, 9125 new
Added 1 addresses from 72.14.191.28: 9 tried, 9125 new
Added 1 addresses from 188.165.73.215: 9 tried, 9125 new
Added 1 addresses from 99.119.197.208: 9 tried, 9125 new
ResendWalletTransactions()
Added 1 addresses from 188.165.73.215: 9 tried, 9126 new
Flushed wallet.dat 241ms
ProcessSyncCheckpoint: sync-checkpoint at 00000000000dacb0f51d53fec053520a9df71b34e205e0595210b51a7c3c4578
Added 1 addresses from 89.29.69.214: 9 tried, 9165 new
askfor block 000000000005ecf19db4 0
sending getdata: block 000000000005ecf19db4
received block 000000000005ecf19db4
SetBestChain: new best=000000000005ecf19db4 height=3695 trust=3696 moneysupply=5633071.87
ProcessBlock: ACCEPTED
Added 1 addresses from 99.119.197.208: 9 tried, 9163 new
2012-09-05 12:53:53 UTC Flushing wallet.dat
Flushed wallet.dat 179ms
Added 1 addresses from 188.165.73.215: 9 tried, 9163 new
ProcessSyncCheckpoint: sync-checkpoint at 000000000005ecf19db4c351a69b3f3484b1b0d1c5749115653e818b0bd21637
Added 1 addresses from 150.140.159.226: 9 tried, 9163 new
Added 1 addresses from 188.165.73.215: 9 tried, 9163 new
Added 1 addresses from 89.29.69.214: 9 tried, 9163 new
Added 1 addresses from 72.14.191.28: 9 tried, 9164 new
Added 1 addresses from 119.110.100.241: 9 tried, 9165 new
Added 1 addresses from 72.14.191.28: 9 tried, 9163 new
ERROR: BitcoinMiner : proof-of-work not meeting target
Added 1 addresses from 119.110.100.241: 9 tried, 9162 new
Added 1 addresses from 46.19.139.68: 9 tried, 9163 new
Added 1 addresses from 150.140.159.226: 9 tried, 9163 new
Added 1 addresses from 72.14.191.28: 9 tried, 9163 new
askfor block 0000000000007f53d326 0
sending getdata: block 0000000000007f53d326
askfor block 0000000000007f53d326 1346849933000000
askfor block 0000000000007f53d326 1346850053000000
received block 0000000000007f53d326
SetBestChain: new best=0000000000007f53d326 height=3696 trust=3697 moneysupply=5634394.30
ProcessBlock: ACCEPTED
2012-09-05 12:58:57 UTC Flushing wallet.dat
Flushed wallet.dat 137ms
ProcessSyncCheckpoint: sync-checkpoint at 0000000000007f53d3260233ba17606cfac219af6752ccd108e53825ed5526c5
Added 1 addresses from 202.9.106.22: 9 tried, 9163 new
Added 1 addresses from 150.140.159.226: 9 tried, 9164 new
Added 1 addresses from 202.9.106.22: 9 tried, 9164 new
Added 1 addresses from 119.110.100.241: 9 tried, 9164 new
Added 1 addresses from 46.19.139.68: 9 tried, 9164 new
Added 1 addresses from 99.119.197.208: 9 tried, 9164 new
Added 1 addresses from 99.119.197.208: 9 tried, 9165 new
ERROR: BitcoinMiner : proof-of-work not meeting target
ERROR: CAlert::CheckSignature() : verify signature failed
ERROR: BitcoinMiner : proof-of-work not meeting target
ERROR: CTransaction::CheckTransaction() : vout empty
ERROR: CTxMemPool::accept() : CheckTransaction failed
ERROR: CTransaction::CheckTransaction() : vout empty
ERROR: CTxMemPool::accept() : CheckTransaction failed
ERROR: CTransaction::CheckTransaction() : txout.nValue below minimum
ERROR: CTxMemPool::accept() : CheckTransaction failed
# ppcoind getbalance
0.00000000
# ppcoind getbalance
0.00000000