Thanks for the info. I'll let the testnet client run for the night. What generate setting should bitcoind have? setgenerate set to true with limit to zero processors, or should setgenerate be set to false?
setgenerate controls the in-client miner. So, it may be set, or not, as you choose.
These external miners use the 'getwork' JSON-RPC call, which works regardless of the setgenerate setting.