Hello all,
Just to add my experience to the pile...
I've been running firmware 1.24 on my LS-WXL for many months as it was the only firmware with which I could access the media server correctly using my Xbox 360, Windows 7 Media Player, and standalone internet radio.
Recently I upgraded the LS-WXL to firmware 1.37 (after quite a few failed attempts), but when accessing after the upgrade the media server page I kept getting the following message:
While firmware updating, Media Server update can not be updated completely. Please click 'Update DTCP-IP' button after establishing Internet connection.
I tried updating the DTCP-IP via the button but the update process kept hanging as described above. After trying this a few times and getting nowhere, I reset the device to the factory settings (this doesn't affect the data on it) and tried updating the DTCP-IP again, and hey presto - it worked fine! Now my LS-WXL is running 1.37 and the media server works perfectly with all my devices - although I haven't tried it with a PS3 as I don't have one.
Hope this helps.
Gareth