Bill, check your start up log file. I think what is happening is pathpilot is overwriting your tool database file (tool.tbl) with the contents of tool.old which in this case is a empty file. Try making copies of your good tool.tbl database file and rename one of the copies to tool.bak and one to tool.old in the same directory as your tool.tbl file is located. I do not understand why but I think what is happening is pathpilot thinks the tool.tbl file is either missing or corrupt and overwrites it with the contents of tool.old which in your case is just zeros. I think this might work.
Are the tool descriptions correct but the tool diameters and tool offsets are being zeroed out on startup? I am using PathPilot 2.12 on my Pulsar without issues.
Steve