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Just out of curiosity, what Manufacturer ID does your 8x media have, as I would be curious to see it anyone else has this same issue also. To me, it seems really strange for DVD-R to be detected as DVD-RW with the new firmware versions, but not the 197 firmware. As I have several brands of 8x DVD-R media as a hardware reviewer, if I get a chance, I can check to see if I have media with a matching MID and if so, I can test it in my LVW-5045 using the newer firmware to see if the same applies on my end. If you have the Nero InfoTool (freely available) and a DVD writer in your PC, insert your 8x DVD-R in your PC’s DVD writer, go into the InfoTool and click the ‘Disc’ tab. The manufacturer ID will be shown in the details below. 
I have heard of other people with similar issues recognising 16x media with older firmware, such as those who use the old unofficial 197 firmware that did not use sophisticated copy-protection recognition.
If you have no other issues with the Lite-On besides not working with 16x media, for now I would recommend sticking with the 197 firmware, especially since its writer can only write up to 8x speed and thus 16x media does not offer any recording speed improvement in this DVD recorder. I do know that the 197 firmware does have issues with corrupting recordings when it comes to defragging the hard drive (although it is not clear whether or not the newer 20x versions have fixed this), so I would strongly discourage defragging the hard drive.