Hmmm possibly a bad power connection? I've also heard of some of my friends with similar problems. It's possible that it could be faulty harware, but as for updating the firmware, this really doesn't sound like a software problem. Unfortuantely these devices are fairly low-cost compared to "real" routers which also means they are lower quality, possibly try to get a replacement if this problem persists, as the majority seem to work ok but some are just bad eggs.
Goodluck finding the problem, and always remember adding watercooling will probably only make your situation better :P unless ofcourse you plan on that refund :P
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