OK this is very close to working... When you give it throttle with the 2 resistors in place of the current sensor, it starts to blink fast because it gets a fault of 100% duty, but zero current feedback. It's just a safety feature, so it's working like it should.
So, is it possible that the current sensor cable is wired wrong? Lem sensors are very reliable. Both not working is very unlikely.
See page 3 here:
http://www.lem.com/docs/products/hass_e_rev14.pdf
Pin 1 (inner most pin) is Vref, which shoudl be around 2.5v all the time.
Pin 2 is Vout
Pin 3 0v
Pin 4 is +5v.
There HAS to be a wiring issue. I can't think of any other reason why a resistor divider would make it work. There's no way 2 lems were broken.