Good news to all Kindle 2 and Kindle DX owners:
A post in the Kindle forum at amazon.com states, that the bugs in version 2.5 are fixed and the update is finally rolling out to the users.

The poster says he had a phone conversation with a young man from Kindle Tech support who told the bugs have been worked out of the 2.5 update and amazon is beginning the roll out now!

The Details:

The update is rolling out over the course of this month by geographical region. There is no official download link yet.

The download is large and takes a while but will download all in one file and not over the coarse of several days as previously posted.

It will update when whispernet is on and has been in extended sleep mode but they are attempting to push out overnight due to the size.

Clicking on “sync and check for items” will not check for updates, only your kindle content like books, blogs, etc.

Tech support has not been told any order of regions.