Sorry for dropping off the radar for so long - too many distractions have prevented me from dealing with the really important things
Anyway, I have tested the specified version of gpsbabel with my Holux and it worked seamlessly. Loaded the data from the device via bluetooth and saved it as gpsx. Then loaded it into GPSPhotoLinker and processed as usual. Good as gold.
Hope this helps despite the late feedback. Any questions please let me know. BTW, I'm on Mac OS 10.6.4 now and used GPSPhotoLinker 1.6.4.