Vince,
It does look like you guys have tried everything possible plus some. The only thing that I can think of to try before you send me the drive, is to try updating the firmware one last time to this version 1.05, which sounds like its the same version you have. Update it once, and see if there is anything in the Drives firmware that is messed up
http://www.cdrinfo.com/Sections/Firm...x?DriveId=1554
If this does not work, then ship the drive back to me at MTU and I will get you a replacement, and test that drive to make sure it does the same thing for me.