As LokiWolf advised me, you gotta keep pressing them.. After 3 visits to service, numerous phone calls to service as well as VWoA, numerous emails, and miles and miles of traveling to test and prove the issue, the dealer I bought my car from FINALLY replaced my RNS-510 with a brand new one that was ordered a week and a half ago.
As of now, no radio lockups and will test the Nav side when I go out of town in a couple of weeks. boot up is still the same slow speed, toggling between functions the same, and navigation through the menus the same but no radio/phone lockups(as of now). The RNS 510 is not a "premium" nav system at all.. There is only one system I would consider that is the one in the Toureg, (810). eshawger, hang in there. Keep pressing until you are satisfied and you should resort to using VWoA and have them as an advocate...The new system is Revision P and HW27.. The Previous version was revision N and H26