Well, the biggest problem for me is the lack of Ethernet jack. If I could connect it that way I'm sure all the problems would go away.
I have had to restart the update 5 times now and counting. AT LEAST, unlike with the Wii, it seems to have the previous progress saved (since the bar starts off where it was before). So I'm getting through it, but very, very slowly. I keep going to do other things (just watched the second half of Fellowship of the Ring Extended version with my kids) and came back down once again to see the error. So all told it is taking me 4+ hours and counting to do the initial update.
Would these DNS issues really be a problem for a continuing download of the update. It's not like I can't connect (once I did all the manual setup - again, not something required by any other device I have) - it just won't stay connected.
But, yeah, the fact that every other device (including my 3DS) connects just fine with default setting from my router indicates that this is indeed Nintendo's fault.
And the connection worked fine once I did the manual IP setting. I didn't do +10, I actually did +20 (since I have so many other devices). It connected ASAP once I did that. But why did I have to do that at all? Every other wireless device in my house auto connects and gets assigned an IP. The problem now is staying connected. Now about half way through the update download. But from what I'm reading I'll have to do other updates as well? That does not bode well. I also am afraid to do the Wii transfer thing since that depends on a connection. I could see that failing and losing my data in some way.