I just received my second KDX and have just updated from factory 2.5.8 to the 3.1 using my K3. I updated my first KDX more than 2 years ago and that works fine with 3.1 firmware. There is 3.2.1 available on the internet if you don't have a donor K3 except I haven't tried that way.
I have been to the yifan.lu website recently and see that is down now so hope the site returns soon. Until then you can search the web for the file "kindleupdater.zip" with size 10026260 bytes and inside is a README.TXT explaining the whole proceedure. Your KDX and K3 have to be jailbroken to run the yifan lu update as explained in the README.
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