Hi Vince,
Up until a week ago I would have told you that 5.1.2.0 software has been great for me/us. Unfortunately I had a CP/SF go "mad" last Friday night while running a debug "trace level 9 3" investigating high CPU/SF utilization. The switch became unreachable via IP, OSPF went down, although the switch didn't fail over to the standby CPU/SF, and VLACP never went down. So I ended up with a very expensive blackhole in my network. I had to have the switch physically power cycled to recover. Prior to the power cycle I was able to issue a "trace off" command from the serial console, however, the console become unresponsive after I issued a "show sys perf" command.
I was very disappointed... I've had the "trace level 9 3" hang at least three core switches over the past 5 years. I would strongly advise you to only issue this command during your scheduled maintenance window and only from the serial console - not from a telnet or SSH connection. Off my soap box...
So I can understand your pain and frustration... there are no COP messages at all in the log?
The Discard Untagged Frames and vLACP should help prevent any loops in the case where a port gets set back into a default configuration. I've seen that same problem many times where a card is reset and instead of adopting the previous configuration the card comes up with a "factory default" configuration with all ports in VLAN 1 and all ports configured as access ports.
I know there were a lot of LANE lock-up issues and other problems with the RS blades in 5.0.x software. As you mention, supposedly these issues have been addressed in 5.1.2.0 software. I'm guessing that 5.1.2.0 can't be any worse for you given your current issues. If you are on 5.1.2.0 software Avaya/Nortel won't really have any excuses to not fully troubleshoot and investigate the problem.
I have 5.1.2.0 software on three sets of clusters right now with 8683XLR, 8630GBR and 8648GTR blades and haven't seen any FDB/ARP/SMLT issues. I would suggest that you try it, I don't think it will be any worse off.
Keep us informed how you make out.
Cheers!