I'm on the latest firmware which is version 3.3
Your old firmware may be the reason you have to hit the lap button and have problems with it stopping recording after a while.
Edge 500 firmware historyAs you say there is nothing specific relating to your problem but it might be included in the 'Fixed various other issues' category in the 2.80 to 3.30 update.
I was going to advise that you be careful before updating the firmware as I've read that in later updates people have reported issues with the bread crumb trail disappearing that didn't exist in earlier versions.
Firmware update discussionThere is some conflicting info on there, but one poster says that the problems started when the firmware was updated from 2.40 to 2.60 (ironically in the firmware update list for 2.40 to 2.60, Garmin state the firmware update •Improved course performance and corrected an issue that could cause some courses to stop processing). The cynics claim that Garmin messed it up so that people were forced to buy the 800.
2.60 is the version you already have though. Have you had any issues with the bread crumb trail disappearing. If so, you may have nothing to lose by updating to 3.30