There are some simple things that can cause this problem, I would make sure to remove any external devices before flashing the ROM. I have seen the issue caused by keyboards and mice.
In the BIOS, make sure your boot order is set correctly (perc@top), and disable any IDE or SATA channels that are not connected.
1) Get a USB drive
2) Download the 1.5 version of the BMC: http://support.dell.com/support/downloads/download.aspx?c=us&cs=08W&l=en&s=bsdv&releaseid=R270159&SystemID=pwe_t110&servicetag=&os=LHS64&osl=en&deviceid=5814&devlib=0&typecnt=0&vercnt=5&catid=-1&impid=-1&formatcnt=0&libid=29&typeid=-1&dateid=-1&formatid=-1&source=-1&fileid=398147
file should be PET110BmcA03.exe, 7.2MB, extract
3) Follow these directions to create a bootable USB
4) Instructions for flashing:
Copy the firmware image file, firmimg.d6, the DOS executable,bmcfwud.exe, and config file, bmcfwu.cfg, to a bootable USB key/floppy in the same directory. >>> Do this in step #3 above
boot off this media and execute "bmcfwud.exe" from the directory where the firmware image file exists. "-i" option can be used to specify the exact image path if not in the same directory.
Reboot the system to the same media as prompted.
Execute "bmcfwud.exe" again to complete the firmware update.
Reboot the system