Yes, this is a problem and you are not the only ones with it! Wouxun's line-up of radios will not go down to 2.5 channel spacing. It is NOT a firmware issue, it is a chipset issue and CANNOT be changed. They will NOT be in FCC compliance as of 1/1/2013
I ran into the same problem when I got mine and learned this the hard way, too. They are supposedly coming out with a new model that will take care of this, but everyone here (USA) hasn't heard or seen anything, other than "it's coming". By reports, it's been coming for a year and a half now.
Then I got a TYT, and that works fine with all the narrow band fx's.
I will use these radios ONLY for back-up radios, i.e. during a disaster for extras. I wouldn't use them myself for day-to-day use.
I have found about the best radios I've even worked with coming from Connect Systems, right here in the USA. 128 channel portables that can do everything you can imagin, in both UFH and VHF, for under $325 per radio. One place that has them is
www.TacRadios.com , you might want to check their website.