It is certainly possible to get a C/C++ implementation out of ASM for a particular architecture. Not sure if it would be prohibitively expensive (975 min order, )or whether the results would be any clearer/more understandable than ASM.
I'm with ACL on the need to do a trace. Didn't someone say they were willing to JTAG their TP2 and trace the runs? That might be helpful. What we need is a friend on the inside in HTC's dev group.
See:
http://www.mpsinc.com/assembly.html
For pricing info:
http://www.mpsinc.com/translation.html
Disclaimer: I do not work for this company, nor do i have any dealings with this company. They just came up first on a google search for ASM -> C cross compilers.