Ok, I had a commercial 250gb maxtor 7200rpm drive here and installed it... the DVR detected it just fine. I checked the original drives and they were 5400rpm and the one I had repalced a few months back was a 7200rpm. The power supply is a 12v 5.2amp.
As for updating the firmware, I used the built in web page to do it. It all completed successfully.
Also verified that both drives are blank with no partition table on them, and tripple checked the jumper settings, the 1st drive is set to "master with slave" and the second drive is set to "slave".
I'm looking in to sending back the 2 AV drives and putting commercial drives back in since I seem to be having problems with the AV series. I checked to see if I could find a Segate SV series, but the few I saw in PATA were not worth the price.