A little update since I first wrote this.

I have been able to get around the problem of not being able to connect at USB 2.0 speeds. It involves connecting the N900, while on, in mass storage mode and getting warning in XP that "The device can perform faster if you connect it to a USB 2.0 port". After that I need to reboot the computer. Once the computer reboots it is connected at USB 2.0 speeds.

Repeatable? Yes. Practical? Not as much as I would like.

I still haven't gotten around to flashing with PR 1.1 just to see if it returns to the same as before PR 1.2. It's almost moot since I don't really plan to stay on PR 1.1