Because he just installed new flash, he doesn't have a full IOS image available to run the copy command, so he's using rommon.
It's possible, however, that there's an rxboot image available in rom. (Don't know offhand if this model has it or not.) Try putting a "1" in the last digit of your config register and reload. If you get an rxboot image running, it may be a little more robust at handling tftp problems.
On the other hand, it looks as though the load actually started and then quit after a few seconds. That would indicate that the router was set up ok, but something happened to the PC after a bit. How much time elapsed from the first to the last "!" displaying? I'd suspect that something else running on the PC is messing it up, and either changing its IP address or preventing the network stack from responding to an ARP request. Try shutting down any extra network-related crap on your pc that you're not using, or try a different machine.