Can't think of anything else that would cause the problem. Tried every single option multiple times just to be sure. The parallel port on my old pc was fine too. If you want to know the bios settings I used HyperGHZ, it's the EPP1.7 setting which worked fine (thanks to Rika Chou). I'm not going to buy a retrode for the same reasons you mentioned. I also have a new pc without parallel port... there's this USB-parallel converter I saw on the web, anyone tried that?
I may be able to get this dumped if needed, I dumped a pirate Sonic 2 cart before. However I would suggest taking the cart apart and looking at the board. There may be some "rogue" pins interfering with the dumping, for example I can't dump Sonic 3 without taping over the pins to the SRAM. You can't use USB-Parallel adapters, you have to have a true Parallel port on your computer, either built into the motherboard, or with a PCI parallel port card. USB-Parallel adapters are only for printers where USB compatible drivers exist, they can't be used for anything else.
In your REV 01 cart, did you get a box with it? If so, what box art does it have? The original or the Sega Classic?