If v1.07 is working, then no big reason to update.
I'd ask them if the newer FW has addressed any of these issues. I haven't seen any other users post about these two problems other than you two.
I'm on 1.09.
While the picture seems noisy, it's not a deal breaker for me.
The camera seems to go black briefly, then back to normal. This is interpreted by the camera as motion, so I get an email (email notification is working for me). I would estimate I get several dozen emails a day where one of the frames is black, the rest normal, an no other motion to speak of.
I also see the camera SSID pop up periodically, perhaps once a minute, haven't looked in awhile. It shows up for maybe 10 seconds or so, then disappears.
The SSID is a security concern, the black frames a major annoyance.
Any chance we'll get a firmware update to fix these issues? I'm considering going back to my old 930, if not another camera altogether.