[flibottf]

I must say, AE seems to work best when wired. I have 2 AE connected through switches and I never encountered any problems with it.

 

[pictureguy]

I have the same setup.....CA840c fed from an AE.
Same, nutty problem, too.   Cambridge has sent me the (zipped) update, all the files and a set of OK PDF instructions.
YOU WILL NEED 
1.  Computer running XP (sp3, I hope)
2.  Serial Port
3.  Null Modem cable.  This is the tricky one.  the data i/o lines are crossed, the 2 devices can 'talk'.  
     A regular serial cable WON'T work.  Do some homework on this one....I'm not explaining it well at all.
4.  Some quiet time to do the actual work
 
Sounds like it should only take an hour or so, tops.  However, I'm chicken and if I 'BRICK' my player I'll really be like bigtime upset.  Did I say upset?  No I meant IRATE.
The dealer where I purchased the player.....who I thought were standup guys, wanted to CHARGE me to do the upgrade.  OR rent me the (*&^%^$#@ cable!  
 
Please post back here with any further information.  Let me know if you pull the trigger on the update.  Let me know if this FIXES the problem.   I'm all set to go, I even have an Ipod Touch with the Remote app which works like a charm.
 
(heavy sigh)    

 

[johnwmclean]

pictureguy, I never actually got to the update stage, CA insisted I take the unit in to one of there service centers for the update. After that I just used optical straight from the mac for a problem free digital transport.
The player has since been sold. 

1. pictureguy