Instead of recording in the stupid .dvr format, which was just a .ts file with a big header on it, the new firmware stores the dvr data in separate files so you can play your recordings on another device without converting them. You can choose from TS or PS, the latter of which gives you a .mpg file -- but it only works with MPEG2 streams, not MPEG4. If you find the menu option to select between TS and PS and set it to TS, it should stop bugging you about MPEG4 streams. (However, if you select PS, it'll still ask you which one you want on MPEG2 streams. Why is every Ali 3602 system developed by morons?)
Also, the new media player won't play the old .dvr files, so you'll have to convert them to .ts if you want to play them on the Openbox.
Finally, yes, even though the arrows are still on the channel list header, you can't change satellites with the arrow keys anymore. You have to use the satellite list button. This is annoying, and the three-column channel list is annoying in itself because it truncates the names too short to figure out what some of them even are!