I don't think 1.10 is the problem, I think it's a combination of custom BGM and the 3.66 update.
Many other users of both this game, and others, have noticed stability issues (hang ups, frozen screens, etc.) since 3.66 was released.
Kaz has tweeted that PD is working on stability on their end, but as usual there's never a timeline.
A cursory glance at the billions of threads posted here daily about this issue leads me to believe that
A- yes, they know about it.
and...
B- yes, they're (Sony and PD) are working on it.
After wasting 30 minutes last night trying to gift a damn museum card, I understand the frustration at not being able to enjoy what we paid for. That being said, at the moment, there's also not a lot we can do about it.
For "preventative" measures, please do the following:
1. Clear your system cache. It's in your Network Options. No evidence that this helps, but it has been known to improve loading times in the past. If your PS3 talks to PDs servers, clear your system cache daily.
2. Disable custom soundtracks. Kaz mentioned this in a tweet a few weeks ago. Again, if your PS3 talks to PD servers (online races, Seasonal events, Remote Racing, item gifting- even the free paints and cards, etc.), you'd probably be better off listening to the car anyway. Most have reported a noticable improvement with Seasonals after doing this simple step.
3. Reset your internet connection before playing. See that power cord on the back of your modem? Yank it, then replace it BEFORE you power up your PS3 and access the network, let alone play GT5.
4. Pray to deity of choice. Might seem blasphemous, but who else are you going to call? (Ghostbusters is too obvious) Maybe YOU will be the lucky one Jesus/Mohammed/Allah/Xenu/Santa/Tooth Fairy will answer, and maybe they'll grant your one wish to fix your games and PS3. Probably not, though.
If all that fails, proceed to Sony customer support. They're about as useful as #4 anyway.
Good luck