I've owned a few of these. Easy to find replacement parts on Ebay for next to nothing. This might work; it depends on what exactly went wrong.
1. Unplug your Microphoto from your PC.
2. Remove Windows Media Player 11 (restart); and,
3. WMP11 runtime (restart).
4. Plug the Microphoto back in; and,
5. Windows *should* rediscover the Microphoto.
6. Install your new firmware.
7. Reinstall WMP 11 and its runtime.
I've had many problems with the hard drive on the Microphoto. You can swap out the hard drive for compact flash very easily. See: http://www.anythingbutipod.com/forum/showthread.php?t=17459
Shakespeake, August 2008