This sucks!
I've got the problem too. This really makes the whole piece of **** totally useless.
Please fix this asap, ive alreade spent 2 hours with this ****!
Edit: I tried to install the 1.32 firmware. It took a minute to upload and then like 90 seconds for it to install. No when i log on to the Router it still says "Hardware Version: A4" and "Firmware Version: 1.21EU"
Did you try to disconnect everything but power and your wired computer, then reset the router to its factory defaults by pressing the reset button for about 10 seconds ?
Wait until it restarts and try to update again.
But there is no way to downgrade to an earlier version before 1.3x ! So if it doesn't help...
I would suggest, you contact the D-Link support in your country.