Can you post the GUI screen capture (on a Windows computer, it's 'Alt-PrintScreen' and then paste into Paint)? It should be like this (except the pages 1 to 16):
Also, is there any message printed in the dos prompt screen after it creates the .prc?
When it failed to create the whole ebook, did a window pop up showing you the temporary .html and file? If so, can you open and view the .html in a browser? Can you import that .html into Mobipocket Creator or Calibre and create a valid .prc ebook?
Just thinking out loud...