Apple has released Xserve Lights-Out Management Firmware Update 1.1 which includes changes to the Lights-Out Management environment of the Intel-based Xserve. It addresses the intermittent issue that causes the LOM port to be unresponsive. This update is strongly recommended for all Intel-based Xserve systems.
The Xserve Lights-Out Management Firmware Update 1.1 works only on Intel-based Xserve systems. The update implements version 1.2.8 of the firmware.
Typically, the Lights-Out Management firmware can be updated without requiring a restart and without impacting running Mac OS X Server services. Existing lights-out management settings will be preserved and current Server Monitor connections will be interrupted. If an issue occurs during the firmware flashing, you may be prompted to perform a full firmware flash, which requires a server restart and re-entering the lights-out management settings in Server Monitor.
It will take about two minutes to complete the flash and verification. Once complete, the Update application will confirm the successful flash, display the current version, then quit. The Lights-Out Management processor in the Xserve automatically will reboot and should begin running the new firmware without any interruption to Mac OS X Server running on the host.
More info and download link (780K) here.