Hey ramuji...thanks for following up on this.
I received an email from KMI, yesterday, along with the A2 firmware update. I installed it and it does indeed work, even though it will only receive program changes on channel 16 (which is fine by me).
This is a MAJOR DEAL. KMI came through and I give them major props for that!!!
As far as not being able to use the latest software to program the 12 Step with the new A2 firmware...there might be a workaround...although, it is a bit of a hassle, for now.
As you have noticed (and, I found out the hard way, as well) you can go back and forth between firmware versions (I accidentally reverted back to A1 when I opened up the 12 Step programming utility and opted to "update" the firmware).
So, I would suggest performing any editing while the device has firmware A1 installed. Once you have it set the way you want it, then update to firmware A2 (using the SysEx send utility), open up the 12 Step programming utility, CANCEL out of the firmware upgrade window, and hit the "update" button. This will send your current settings to the 12 Step, even though it has the A2 firmware installed.
I would strongly suggest backing up your settings by making a copy of the 12 Step programming utility directory.
Hopefully, KMI will make the changes needed to the 12 Step programming utility soon. The addition of patch changing capability is HUGE, though.