QUOTE(dylan.angelart @ Jan 30 2012, 02:03 AM)

Ok, I've sorted it.
The select button on the outside of the case was not touching the button on the motherboard hence it wasn't updating the firmware from 1.0 to 1.2.
I knew it was going to be something really simple, the only problem is I've wasted hours trying to find a solution.

Thank you so much for finding that. I had exactly the same problem and was looking for a solution when I happened on your post.
On examination of my Wasabi360, I found the tab on the bottom of the Select button was just missing the corresponding button on the motherboard.
As a solution, I cut a small piece of plastic (the same size as the tab) from a flexible CD case and used a dab of Super Glue to glue it onto the front of the tab. When reassembled, it worked perfectly.
Must be a manufacturing error.
Anyway, your efforts have not been wasted because hopefully your post will guide many other confused souls onto the right path.