Did you run the firmware updater as Administrator in Vista/7? If you don’t and you have UAC on that will have issues. (it’s on by default, and it you turn it off, it’ll nag so almostly certain yes).
I wouldn’t use the auto updater, Smartpack. go to firmwarehq.com and download the standalone executables specific to your drive (careful, there’s two versions of the iHAS524, but it still shouldn’t let you if you download the wrong one). If you execute them as I mentioned you need to do, you should not have any problems.