When I had my Pro-96, I likewise found that v1.2 did seem to behave better; there's been reports on various Pro-96 forums that v1.2 of the firmware tends to have better performance in fringe areas (I live in metro Louisville, and noticed my worse problems were with trying to pick up the Shelbyville repeaters for KSP).
Interestingly, the GRE PSR-500 does *not* seem to behave badly; the PSR-500 is a more sensitive receiver than the Pro-96 (in fact, I'd say it is quite possibly the most sensitive radio I have ever owned), though, so that may explain much of the difference there.