Hi all,
The best advice is to stay on 3.5 (which was the first release for the mkIII) until the next release. DONT UPGRADE to 5.02. It is known by B&O that there is a specific bug with the BS3 chassis systems with Sky HD boxes and they are having continuing issues. There is no current reported timeline for the next release, but its the one scheduled with the Sky HD fixes.
Staying on 3.5 will leave you with several little bugs - but by comparison with the 4.x release cycle, you'll be a lot happier. B&O's software engineering certainly took several steps back this year either in trying to develop new features like 24p and not testing properly or the QA team is not where is needs to be.
The key issue with 3.5 will be the white flash with 1080P content and the position of the TV being lost from time to time + several other minor issues. But for normal TV and DVD you'll be just fine. In many regards, I wish I'd left mine there.
Best, Mark.