Share your experience!
Problems in update
1.Phone still lags and crashes occur. When it lags Power button stops working.
2.Wallpaper flickers when Home button in pressed from menu.
3.Xperia Home crashes and phone hangs.
4.There is little improvement only. I suggest you not to update .
5.Phone takes time to launch an application.
Saddamjit wrote:Problems in update
1.Phone still lags and crashes occur. When it lags Power button stops working.
2.Wallpaper flickers when Home button in pressed from menu.
3.Xperia Home crashes and phone hangs.
4.There is little improvement only. I suggest you not to update .
5.Phone takes time to launch an application.
I do not experience the things you are. Maybe you disconnected your phone to fast or the firmware did not install itself propery. In order to fix it save your SMSés by using a relative android app. Also back up ALL data, the whole Xperia SP directory. After that perform your factory reset and do take out your sd card as there is a risk of corrupting your SD card.
Btw is your update .066 or .201?
If I have helped please gimme a Kudos
CarbonoAtom 
I'm using C5303 model with Central Europe 3 (1272-3354) region firmware - and I'm not experiencing such problems.
Maybe is just my phone, but I really don't have many complaints against this firmware version (12.1.A.1.201).
I always experiment with upgrade over PCC and clean reinstall with SUS, but with this upgrade I haven't noticed such problems.
There were some lags in previous version of firmware and higher memory consumptionm but I think this version is way better then .266.
I'm still testing for "bad" changes, but until know I've found only minor stuff (not worth of mentioning it).
Sad to hear that many people have such problems, but maybe future updated will solve your problems.