Ok, The flash fails after it copies the data, it reports a flash failure and an error code at the very start, the drive light does not come on & resetting the drive will allow another attempt. Seems to fail when it checks the image that was copied to the drive before it actually erases and burns the new firmware.
I have also tried the drive in my desktop with an nForce2 chipset (MS drivers, again working fine on 1.04). The drive fails data checks on the burnt DVD's using 1.04u but passes using 1.04.
I dont trust nero to verify my data as I have had it fail but a copy & compair passes. (old nero version)
To check I burnt 2x 1GBish files onto a DVD and then copied them back to the HDD. I also repeated the test by compairing a full DVD video I burnt with the original files, this also showed major errors that made the disc useless as it fails to play on ANY drive I have (even the plextor). To check the discs I performed PIF test in Plextools & also on my BenQ 1620, it showed a max of 3 errors & no POE's so I conclude that these discs were burnt correctly.
Please note that I have noticed that some people have had problems with unexplained coasters but others have got 1.04u working correctly so it seems that it may affect some drives but not others. It may be worth doing a few compairs of the burnt discs to the original data to check for errors.