I just posted my vent on this drive on another thread where the poster is having problems with his. http://forums.afterdawn.com/thread_view.cfm/1/212999#1170231 @lundymei It was the exact drive you had the BTC1008, although mine is an external, and you are correct the firmware update made problems worse. I really feel that I/O Magic makes subpar products.
I believe I fixed my problem after I read it here: http://www.comp-stuff.com/cdr/DMA_onoff_437747.html XP auto set my DVDRW's IDE controller to PIO mode which slow down the data transfer, and it should be in DMA mode. So I unistall the controller for the DVDRW and reboot to let XP pick it again. And I am back to my happy state. (4.37GB under 12min with 8X)