Nixudos, i got almost the same setup as you. My PC is connected, with a DGE-528T network card, through LAN and i have a DSM-520 media player a netbook and a windows mobile connected through Wi-Fi.
The router is a A3, an i am yousing the firmware yours were shipped with 1.20EU.
Right now i am on DHCP (10/1 Mb), and my system funktions perfect. I use PlayOn and WMP 11 as media servers playing wirelessly to my HDTV through the DSM-520.
You should proberbly have stuck with 1.20EU insteadt of upgrading to 1.21EU, did you try 1.20EU before you upgraded ?, otherwise you could try downgrading.
I am waiting for the official 1.22 to arrive.
On monday i get a 25/25 Mb fiber connection, so will see if the change to PPPoE from DHCP change any thing.