I recently had my 1 TB hard drive lock up with the 'BSY' bug. Seagate hs a firmware update and know about the problem, but doesn't inform people about it. There is a diagnostic mode built into the drive with a serial TTL interface that sometimes allows you to rest the drive, and install the update. Of course, it's your fault if the update fails, and it voids the warranty they already don't want to honor. They claim the serial number is invalid, but the registration information is on that drive, in an email.
Ironically, I had just started to back it up to an external 1 TB drive when it failed. All I got was about 3% of the files on the other drive, and nothing I need is in that small batch of files.
I had to reinstall the old 80 GB Samaung drive that I had replaced with the Seagate ST31000528AS 1 TB drive to get back on line. It's almost full, but still a hell of a lot faster than the Seagate drive ever was.