Lite-On LH2B1S 490C and Sil 3112

I have recently purchased a Lite-On LH2B1S 490C blu-ray drive but I am getting odd results from it.

For small files (a few K) reading is OK but any attempt to copy a large file from CD or DVD fails, burning fails for any size file, as does any attempt to UDF format a disc (DVD or BD-RE). These symptoms have remained unchanged across many driver and BIOS versions of the SATA controller and a flash to the latest firmware version of the drive itself.

I am trying to establish if the drive is faulty or if it is a hardware incompatibility.

My system:

Abit IC7-G (this has Intel ICH5 and Silicon Image 3112 SATA controllers - the LH2B 1S is on the Silicon controller)
Lite-On LH2B1S on Silicon Image 3112 Port 0
Samsung Spinpoint 200 GB SATA on Silicon Image Port1
NEC ND4550A DVD on IDE 1 Master
CD/RW drive CRD-BP-1500P on IDE 2 Master
2x WD 500 GB drives in RAID 0 on the Intel ICH5 controller (System drive)
Radeon X1600 512 MB Graphics (AGP)
1GB DDR RAM
Windows XP Pro SP2

Action so far -

Removed all burning software
Reinstalled the Cyberlink BD suite provided with the drive
Upgraded to latest Mainboard BIOS with latest recommended Silicon drivers from Abit website
Made new mainboard BIOS with the latest 4283 Silicon Image 3112 BIOS flashed and updated to the latest drivers 13670
Updated to the latest drive firmware 06

None of these actions has made any difference at all to the symptoms, I am still unable to read more than a few K and cannot write to the drive at all on, applies to CD DVD and BD.

Help please! As you can probably tell from the above I’m very IT capable but what do I do next? I do not have access to another PC with SATA to test but could buy a controller if the 3112 is a known problem and someone tell me a cheap known compatible one. On the other hand it could just be the drive is faulty.