According to this site, the flash should be performed from DOS
http://www.geocities.com/SiliconValley/Bay/6893/3610mod.htm Reading further, there is a DOS and a Windows tool - now if I had a choice of a DOS or a Windows Flash, I'd go for DOS every time!
Try again using DOS mode and the 3.09 firmware
This is a pretty old drive though - if you end up looking for a new one (I think your location said USA) - keep a close eye out for good rebate and discount offers, or go looking for a cheap drive that uses the Liteon guts at lower price than a branded Liteon - does anyone OTHER than Liteon use that rounded end LED and rounded end button (the two are the same shape) - if a drive has those faceplate features, it's probably Liteon based - typically, the tray front is also rectangular, slightly vertically bowed but faired off a little at the ends.