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The firmware to repair your SSD's problem is part of the bootable tool you tried to use, but failed, apparently.
If you have another Windows PC you can use with your 320, you can try to update the firmware with the SSD Toolbox:
The SSD Toolbox, and the bootable firmware update tool you tried to use are the only method of updating your SSD's firmware.
If both of the methods do not work, you should contact Intel support:
I've send a Mail to the Support with the Serialnumber and the displayed serialnumber BAD_CTX 00000136.
Btw: Intel Toolbox Update fail with the errormessage:
"Error: SMART enable failed while attempting a firmware update. Reboot and try again. If error persists, use the Intel Firmware Update Tool located at:"
Hope they may help me.
Had the same issue - "Enable SMART" when attempting to apply new firmware (via SSD toolbox and with CD).
What worked is that in SSD Toolbox (you need a working Windows machine for that) I first erased the drive. After that Firmware update went without a glitch.
What I read this error anyway did not allow data recovery, so this is not a concern.