Thank you for the reply. Yes, originally also tried to copy and read referenced firmware update on an 8 GB SDHC memory card, with the same problem of the camcorder unable to recognize the firmware file.
Called Canon Support. Disappointed with the support and options. This is what was offered:
1. Cannon does not offer a free firmware upgrade for the VIXIA HF M301. The M30/M300 firmware upgrade discussed earlier is not compatible with the M301.
2. A camcorder reset was tried, without success, still had seven LED flashes and no battery charging.
3. Confirmed the AC Charger could run the camcorder without the battery, which I also previously confirmed. So the AC Charger appears to be functioning correctly.
4. Suggested that I had a bad battery. However I explained I had two batteries, and the symptom is the same for either battery, and the problem started at the same time for both batteries. Highly unlikely both batteries would go bad at the same time.
5. First option to fix the problem: Send the unit in for repair for $159 + shipping + tax. 90 day warrantee on repairs. I fell out of my Chair!
6. Second option to fix the problem: Trade-in Program-Upgrade to an equivalent or higher line factory refurbished model at 15% off Factory Refurbish Price, but can only qualify if I send back my current M301 in exchange. A better 12 month warrantee. I jumped out of my Skin, not out of excitement!
We ended the call at that point, without resolution.
This is what I would expect:
1. Canon should simply fix the Firmware on the M301, and offer it as a free upgrade, similar to the M30/M300. Why charge customers $159+ and downtime to fix it at the factory?
2. The camcorder works fine, no other problems, other than lack of battery charging. My unit is in brand new condition and only a couple years old. Why can't Canon offer the 2590B002 CG-800 Lithium Ion Battery Remote Charger? I bought this charger new at Amazon for $58. With shipping/handling/tax, the total charge was $63.22.
Problem Solved. Can charge the batteries and use the camcorder just fine. And I don't have to tie up the camcorder to charge batteries, the second battery can be charged, while using the camcorder. Also there are posts claiming that the remote charger charges the batteries more efficiently, increasing the life of the rechargeable batteries, vs. charging directly from the camcorder.
Hopefully this info can save another M301 owner the time and hassle I had to go through, to find an acceptable solution at a reasonable cost and minimal down time.