Okay. After reporting this issue to technical support, I discovered that they apparently weren't aware of it. Support tested this with every available version of Monkey after I reported it. All versions had the same result. I was told that they were going to pass this on to the Line Six software team and that I should watch the download page or merely monitor it using my current version of Monkey for a new version or update which will resolve the issue of either reinstalling through server or installing flash memory 1.31  from file. As you know, those who are suffering from this issue are unable to do either after the flash memory update goes awry. According to Support, the issue lies with Monkey. I was told it might take as long as a week to get this resolved, after which we should be able to update Monkey to a version which allows you to reinstall flash memory or install from file in the event your flash memory update screws up. So for now...we wait.

UPDATE!!!!

Okay. Here's where we stand. After updating to Monkey 1.57, I was finally able to update flash memory for the POD hd300 and everything appears to be working. If you're a Windows 7 user and you've been struggling with this, you have my sympathies. Obviously, I'm no expert, but here's my recommendation and I'll leave corrections to silverhead or another competent community/techminded person, who is.

First, it looks like Line 6 has updated Monkey to now allow reinstallation of the flash memory either from server, from file, or with an option to roll back to an earlier version. The latest version, which resolves this conflict with Windows 7 is available (1.57). (BTW, I need to say nice job Line 6 Software Team...and a huge THANK YOU from the bottom of my heart.) Anyway, you Windows 7 folks will have to update to Monkey 1.57+. That's first. Easily done with a few clicks from your desktop after installing Monkey. If you have a much older version, you'll have to repeat this process a few times to bring you up to speed, as every time you open Monkey, it will ask if you want to update it until you are current with the latest version. Just do it until you're current.

Second, you'll need to make absolutely sure you're using a root/dedicated 2.0 port if you're planning on updating your POD. If you're a Dell Inspiron user like me, then I wouldn't trust the USB ports for updating the flash memory, even the ones in the back. Everything else seemed to update fine from through the rear USB port. But due to all the hell I went through in trying to update flash memory from before, I took no chances and downloaded the flash memory update to my local machine this time around. After you've downloaded it and placed it on your desktop, go into Monkey and if drivers and firmware are good to go, highlight  flash memory, choose the install from file option, this will open another window for navigating to the file you just placed on your desktop. Select the file and install it. Monkey will do everything else. Takes a while to do that update, so go grab a beer and chilax while it's working:) It will prompt you when finished.

Oh one other thing I discovered in testing this. If your POD HD300 EDIT software is open, at the same time when you open Monkey, you will see the dreaded dash symbol in the Installed column where your version number should be. Basically anything else which is using your POD must be closed when you're doing the stuff with Monkey if you want things to appear and/or work correctly. I think Line 6 has explained this elsewhere, but you won't get a prompt by just opening Monkey up while your EDIT software is open. So if you're getting the dash of death in that Installed column next to flash memory, be sure that your EDIT software is closed. Also, if that's your situation, after you close your EDIT application, I would restart Monkey and see if it now detects your flash memory version properly.

That is all. I hope this helps at least one other person struggling with this thing. If it helps you, let me know about it. CHEERS!