for some reason i couldn't flash through usb even though the box does play media files through it (another problem), so i ftp'd the update to the backup image manager. restored from there with settings restore and tried without settings restore, neither fixed the problem.
i tried the same with an earlier version, Apollo 062, still the same problem. then updated from Apollo 062 to 109 via software update option on the main menu. still had the same problem. so went back to 003 where everything seems to work fine!
just to see whether ftp'ing corrupts the file, i copied 003 from my box onto my desktop, then renamed it and ftp'd it back to the box and restored that specific 003 image and it works fine too?!