I was ordering from DX.com so I thought I would take a chance and order a TS-S18 UK smart plug hoping that it had an ESP8266 module inside and it does!

I've taken it apart and for your pleasure taken some pictures and put them in a Google album:
https://goo.gl/photos/M1RjE4xJXeocNutB8
It has a HF-W02 ESP module with an 8Mbit (1MB) Winbond flash chip which has GPIO's to spare and the header board is also nicely labelled and even has headers for the TXD, RXD and IO0. I put 5V into it from my USB serial adaptor on the 5Vcc pin (the board has its own 3.3v regulator) and managed to get the bootloader. By grounding IO0 I flashed on the 1024 R120 but once it starts up none of the serial port data makes any sense now. I saw somewhere here that I should blank the flash bank if there is a problem and I used Blank_1M.bin to do that, but still it doesn't work right. I've also tried R140 r3 but it behaves exactly the same. I've also tried an external 7805 PSU to ensure it had sufficient power to start with and a different FTDI USB adaptor, my only other hardware option is to try a different 3.3v regulator.
I wondered what the serial port baud rate was and after trying everything I decided to measure the period of the bits on the wire to see if I could spot something and what is odd is that it comes out at 176-178kHz which makes no sense in serial land?
I've flashed it twice now and both times the same, interestingly the serial data does seem consistent rather than just junk:
Now, I don't have a dump of the original firmware from the device so I may have ended up with a brick as a result, but I don't believe it, I think I've just done something wrong and I would appreciate anyone's advice as to what steps to take next?ets Jan 8 2013,rst cause:2, boot mode:(3,7)
load 0x4010f000, len 1384, room 16
tail 8
chksum 0x2d
csum 0x2d
v09826c6d
~ld
y▒a▒
▒▒n▒+▒&|▒+X▒▒▒g▒ ▒▒A▒V▒▒▒&▒▒;N▒&▒▒▒.▒Xa▒
▒▒*▒▒n