deja vu -- maybe. I use PicStart Plus, firmware 04.30.03 with MPLAB 8.30. Several years ago, I got a similar message that I needed to update firmware for some new chips. I tried the online update and it trashed the PicStart Plus. Called MicroChip. Spoke to a service person in Arizona and they sent me a new accessory board with the current firmware that just plugged in and a power supply. It had something to do with the chip in the older units. The incident was long enough ago that the details are a bit foggy in my mind now. Cost was minimal, if any, except for shipping. Surprisingly, MicroChip wanted the old items returned.
My suggestion is to call MicroChip's representative before trying to do anything online to update it.
John