i have never tried that before, one time i tried i remember it came out funny.
open the raw file with 0 ev. file --> open --> raw file
OR, generate jpgs from the relevant raw files and do what you did. i.e. use your relevant software to output jpg without any changes, and then use the hdr --> generate --> select relevant jpgs --> ok
it should work, if not, upload the raw file somewhere and pm me the location, i will try to see what is wrong.
i did try opening a single RAW file. Same problem..
followed your method.. no problem when converted to jpeg or digital negative first.. i guess my raw file is not accepted by the program?
here is the file http://download.yousendit.com/33A9AFA772295915