"Could this memory chip be bad"
Yes, of course that is possible.
"do I need to update BIOS so my computer recognizes the newer technology"
What newer technology - you should be using compatible RAM, which will perforce be the same (and therefore the correct) technology.
There seem to be two models - one which uses DDR and one which uses DDR2 according to the Crucial website. I suggest you try their scan to tell you what is the correct spec for your system.
Also - did you take out the battery (to ensure all power is off the motherboard) before changing the RAM - if not you could damage it.