The two drives is indeed normal as you should see a READER drive and a SETTINGS drive whenever you connect the 350 to a Windows computer.

Since I've never encountered the problems the update supposedly corrects, I think I'll wait a bit to see how everyone likes it, especially since there seems to be at least one person with a possible update related issue. It seems both issues it addresses are with purchased books, and since I ALWAYS deDRM my purchased books and modify them to suit my tastes, that might be why I've never had the problems.