To comment on the Lite-ON issue: I bought this drive and I got a different brand. It seems to be an Optorite drive, but it's hard to find information on it. It does have buffer underrun protection and such, and works pretty well.
When it comes to firmware upgrades, information is very sparse but I finally found this out:
The optorite drive (40x12x48, firmware 100C) is the very same drive as the MSI CR40-A2 (MS-8340S), and it accepts their 120D firmware update without any problems. It now reports as an MSI drive, and it works really well. I don't even want a LiteON, this thing works probably at least as well. It does write SafeDisc2 but not read it (i use my DVD-ROM for reading those).