Has anyone had any luck USA-wise on getting Sony to update the Firmware for free? I don't want to pay the $260.00 for a firmware update if I can help it, but it does seem to help the RED on the camera.

Well, I just got off the phone with Sony. They are refusing to admit there is a firmware upgrade or that anything is wrong with the camera. I have a suggestion :
Anyone that has this problem with the HC1, phone into Sony :

1-800-222-7669 (toll free)

Ask for Tech support and tell them the problem. If enough people do this, we might make Sony wake up and smell the coffee. I was told I could send my camera back in for repair to the "red" problem ,but it would cost me $250.00. I told them, this is something that should have been fixed right out of the factory, but they won't budge because they think it is an isolated incident.
Well, that is my two cents. I would like to get a dozen or so phone calls to Sony to make them change their tune on this.

Given that it's been nearly a year since this camcorder was discontinued, there is little point in continuing this particular discussion.
Thanks to everyone for their input.