Unfortunately, the 1.1 firmware does not fix this.
This is what I've sent to the service center:
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Had trouble even upgrading ... and it is still frozen after the upgrade.
With the bin file on a card, you put the card in, and turn on the camera, then press play ... guess what, it displays the screen asking if you want to upgrade (see attached pic) but then freezes, presumably because it is in the playback menu!
I tried the WiFi hack I described before... started it up, connected to WiFi, and after doing this a few different ways (card in initially, card out..) I got to a state once Wifi connected, where I got the same screen as in the pic, and when I tapped the <yes> onscreen, it worked!
I would note that the first time, I tried using the control wheels to change No to Yes, and it froze.
Unfortunately, after upgrading it is still frozen in playback.
I did check the version after upgrading, and it does say version 1.1 now.
As long as I don't press the playback button, and stay out of the playback menu, camera works.
If I do either of those, camera freezes, and I have to remove the battery to get it back functioning.