FWToolbox doesn't come with 1.6...and there is no 1.6 for Hitachi period, yes your drive is dead (but the key is still there). It will need to be re-programmed externally...no there is no "clip on chip" (this isn't the Wii scene

) - don't worry about flashing or spoofing, get it re-programmed first (PM me if interested).
gigabite