Sounds like the same problem some people were having with their central locking/alarm remote controls. No, I don't think 1.1 or any other software upgrade will be able to fix this.

(list 6284, Mk1 S/N 00299 4GB blue [for sale]. Mk2 S/N 080000094 6GB blue)
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(list 6284, Mk1 S/N 00299 4GB blue [sold]. Mk2 S/N 080000094 20GB blue)