I'm certain the "new version" is a red herring, Bill -- the problem here is a hardware issue. If the system's locking up and requiring FireWire to be unplugged, it's likely that a bad sector is causing the FireWire bus to lock (which hangs the I/O subsystem).
Try using Disk Utility to erase and zero the drive. Then, give it another try and see if that works.
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--Dave Nanian
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