Upgraded firmware for a microcontroller is created and encrypted to construct a file (116) that can be distributed and installed by technicians in the field. The encryption includes character encryption (210) of the data as well as a second level of block encryption (216). Within the encrypted file (116), information about the firmware and the target microcontroller (104) is included. The distributed firmware file (116) is stored on a portable device, such as a PDA, that can communicate with the target microcontroller (104) to effect a firmware transfer from the PDA (112) to the microcontroller (104). The microcontroller (104) includes a programming routine that receives the encrypted data stream from the PDA and decrypts the data before storing the new firmware image. The programming routine also identifies when updating the firmware has left the firmware in an unusable condition and prevents operation of the microcontroller until the firmware is restored. Accordingly, the security of the firmware is maintained throughout the distribution and upgrade process and the integrity of the upgrade process is maintained as well.