I wanted to contribute another wierd problem to the current thread.
I just bought a LiteOn 32123S and after reading up on firmware upgrades here - I flashed it to the latest firmware (xS0X).
Today I noticed that my drive will no longer read CDRW discs. I reinstalled InCD and rebooted - nothing. I’m using some Memorex 1x-4x Rewritables that have always been good to me in my old burner, but I thought maybe it was an incompatability issue. So I tried the CDRW that came with my LiteOn. Still nothing. The drive would read regular CD’s and CDR’s wihtout incident, but just would not recognize a CDRW.
I desperation I downloaded MTKFlash and the old .bin file (xS0U) and reflashed the drive.
While I’m writing this, I am formatting an older CDRW (one of my Memorex’s) So far so good - I’ll be sure to let you know if I have any problems.
Like I said, I saw this thread and thought I’d contribute - at least in my case, I’ve also had problems with the newest firmware. YMMV.