OK. for the record NO, you are NOT supposed to lose data on your seagate drives if the firmware update works like it is supposed to.
NOTE: SEAGATE RECOMMENDS BACKING UP YOUR DATA FIRST (Just in case)
I have 2, 320GB Barracudas. One has the AAE firmware, one
had the AAK firmware. The update for the (supposedly) faulty AAK firmware is the newer AAM firmware, which I believe is technically considered BETA. In my searches I did not find a way to flash both drives to have the same firmware...not that the AAE needs an update. I'm just OCD like that sometimes.
I downloaded the AAM firmware, booted using a bootable CD and flashed the firmware without losing any data.
Note the restrictions for using the firmware (usually listed on the sites where it is available). It is only to be run on the AAK drives that have a P/N ending in a certain sequence of digits. 308 is one of those that *CAN* be flashed successfully.
I couldn't find the site where I found the firmware originally, but the file on my computer was called ST3320620AS3.AAM.zip ...You can google search for that and find it pretty quick at a number of websites.
EDIT: I found the link.
Here's the discussion
http://www.fluffles.net/forum/storage/34.3#919
Here's the file!!!
http://www.mediafire.com/?30ddatf19xs