Same issue here. No firmware updates that I can find.
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I'm going back and forth on whether to return the unit because I got such a good deal ($149.99 sale - $20 Santa Bucks (Meijer) + tax = $137.78) and it plays all of my other discs thus far. It's disappointing that we have to pay for firmware updates, though. Possibly I, or someone, can provide an ISO image for others who have the same issue (once it becomes available), if Funai is not able to provide a download for their customers.
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I'd have to take a guess and say that is only if you want their firmware DVD. I'd hope any sensible company would allow for the download (and burning) of the firmware. Withholding the firmware for money is just asking for an influx of hate mail and/or returns of their product. It'd not be a smart business move.