hello WirezFree,
I have not been active here for a long time. Let me answer your questions, even though the answers might be too late for you... they might be useful for someone else
1./ I am not aware of any new BIOS. You will have to use the standard IDE ATA/ATAPI controller. This might not be a BIOS issue, but the early Atom chipset
2./ I use the regular MS SATA drivers... ICH7-M Family - 27C4... and have never had a problem. Never any bluescreen. Never any dataloss. This has been a very robust laptop... much more so that the previous (much more expensive but now old) SONY it replaced.
In an earlier comment, I said 64GB is enough SSD storage for a netbook. I would continue to maintain this view except for your usage scenario. I use my SSD card reader for uploading photos from my Nikon. I also use the netbook for syncing iTunes on the iPod touch/iPad. I also use it for my email box. I leave my main PC (workstation) free of those applications... and email stays on netbook since I travel for business and take it with me.
I upgraded the original supertalent 64GB drive to Crucial m4 128GB. There was no real "feelable" performance gain... just more storage space. Now, after a few years of email collection, and more apps in iTunes, and me syncing some key folders with my NAS (business documents), I need to upgrade to 240GB.
I have noticed the netbook get slower over the years. I think this is just windows doing its usual thing... and because there is no trim on my ssd or OS, and it is suffering from the usual fragmentation and registry cluttering. The only solution is a complete reinstall which I am avoiding due to some software I have on the machine where the licenses have now expired (but i can still use)... and of course the enormous time it takes to reinstall an OS and all applications and data.
I would also still recommend this netbook to anyone wanting a cheapie off ebay. However, the battery life is laughable now that it is a few years old.
I'm ready to upgrade to a new machine... but need SDcard reader, better resolution, matte screen, full sized cursor keys (not those silly little keys you get on so many laptops these days), and a real non-sticky trackpad. Can you believe I'd still looking?