Thank you for your reply.

Since N900 isn't available directly from Nokia dealers anymore, I had to purchase it from a regular shop. And even though the device has a Nokia Care warranty, from past experiences they will suggest replacing the device, which is not available as I mentioned. I am trying to solve the problem in a way that won't make the seller mind returning the device for an exchange later on. I am afraid changing the SW could do that and I could get stuck with a broken device

Edit: I just contacted the seller by phone. He said it's OK to try the latest SW. He would still allow me to exchange it for a galaxy SII if that didn't work out. I'm hoping it'll work as I loved my previous N900. I'll try to flash to PR 1.3 and report back. Thank you.