I'm not sure, but I think you try to load an applet which is already installed before, on the simulator. So, try to delete the simulator first and then deploy your Cap file and load and install it on the card.
output: Java Card 2.2.2 APDU Tool, Version 1.3 Copyright 2005 Sun Microsystems, Inc. All rights reserved. Use is subject to license terms. Opening connection to localhost on port 9032. Connected.
you should send pin initialization value when you are installing the applet, I mean you should send the pin default value as the data byte of install APDU command.
// The installation parameters contain the PIN // initialization value pin.update(bArray, (short)(bOffset+1), aLen);