It's funny you mention that particular setup. I just finished doing that myself 2 days ago. Fantastic program.
If you're in dev mode, novacom is running, you selected "charge only" and you're running XP-sp3, you shouldn't be having any problems using novaterm.
I know that's not a real helpful statement, but it's true. If all the things you've said are true, I have no idea why novaterm wouldn't work for you.
However, that how-to isn't the only way to get the job done.
If you have preware installed on your Pre, there's an app called Cell Stalker that does almost the same thing. The way it works, is that your phone will update it's GPS location to a website every 10 minutes with a random key that you can only get from your phone. You can share the key, and then change the key.
It's not live tracking as fast as you can click refresh, but it may be enough for what you want.
If Cell Stalker isn't good enough, then the only other thing I can think of, is just double check that the phone really is in dev mode, and reboot it as well. Hopefully somebody else will have a better idea.