Believe it or not, I have solved my problem.
It was a bad SATA drive. Actually, its not "bad" per se, its just not manufactured to SATA standards. After long drawn out tech support calls to Seagate, I finally got a hold of a senior technical representative who was able to tell me that my HDD was manufactured prior to Seagate adopting the SATA stadands. So, although it looked and acted like a normal SATA drive, certain calls to the drive would cause it to spin down, making the computer think it had been disconnected.
Seagate replaced my drive with a new one, and everything works fine now, even Retrospect.
I would have never guessed in a million years that something like this was the problem, but with a new working drive, I have no problems.
Thanks
Andrew McVinnie