Problem with Batch conversion action - plz help

I'm using Photoshop 7.01. I have a bunch of 16-bit TIFFs that I want to batch convert to 8-bit JPEG FINE.
I created a manual action, which works fine, hook it up to F2 and open up 50 tiffs at the same time. Start hitting F2 and the files disappear and I end up with a nice bunch of jpegs.

Now I want to automate it, so I create a new action.
Open TIFF
Change to 8-bit
Save as jpeg
Close

When I run a batch, choose a source folder and target folder, and kick it off, I see all the files open and close, but only the first one (used in my example to create the action) ends up as a jpeg, followed by a bunch of TIFFs.
As far as I can tell, the action opens all the files one after the other, but it always saves the same file.
So, in my output folder, I get 1 JPEG followed by 250 different TIFFs, but the JPEG always appears on my screen for a split second during the save sequence, so it looks like it is being saved 250 times...

What am I missing?

Hi, in the batch window option just put a check mark in the box "Override Action Open Commands".

Thanks. I did that.
I tried 'Override Open', I tried 'Override Save' and I tried 'Ovveride Open' and 'Save' togethr.
I either get 1 jpeg followed by 297 TIFF or I just get 1 jpeg, overwritten 297 times with the same image...

Maybe you should check how you wrote your action. I´ve just did it as you posted it and it works fine for me.

I agree that it's probably something in my action/batch settings, but i don't know what I'm missing, which is why I posted here. I'll try going over the settings again, but I've already done that for two afternoons now...:(