I spoke to Lincoln Palmer (the head of customer service for Onkyo) yesterday. He said the upgrade info should be on the web on Friday. The upgrade will be performed by regional service centers only, and the cost of shipping and insurance is included in the cost of the upgrade.
The update WILL contain a fix for the DD dropout problem. Personally I cant wait to upgrade, the THX Surround EX will allow 5.1 material to be converted to 7.1. If they do half as good a job with this as they did on PL II this should be a real treat. I am sure that some of the other new features that are not heavily supported with material now will be in the future and the $200 early incentive goes away the end of August, so if you are at all considering it you should probably think about doing it soon. Boy I really hate having to unhook this baby (I have almost no empty jacks on it) and then hook it all back up again, but I think the upgrade will be worth it.