Firmware is basically the software that exists inside a piece of hardware, in this case the Pioneer burner, that tells it how to operate. It takes input data from the computer and "converts it" to information that can be output to a disc. I purchased the 106 not too long ago, and it came with the latest version of the firmware, so you will most likely be all set. There's no real need to worry too much about updating the firmware unless you are having a problem operating the hardware. And when you do be careful, it can ruin your drive if you do it wrong. You won't have to worry about installing any firmware after you put the drive into your machine, it should just run fine. The Pioneer 106 is a good model, i'm very happy with mine.