(changing firmware will void your warranty and it is not recommended by dlink)
FOR V2 VERSION (also for V1),
You can use H/W Ver. V1 F/W Ver.1.03_ME from Middle East site
STEP 1: Download Firmware
(This will show your H/W as Ver. V1 for ver. V2 )
STEP 2: Apply Firmware
USE ONLY WIRED CONNECTION
Method 1:
The firmware may not be accepted in the normal firmware update mode. Then you'll need to update it in the dlink crash recovery mode using a LAN cable (not wirelessly). Assign a static address on the PC for the ethernet interface in the 192.168.1.x series for eg 192.168.1.5
Switch router off, press the reset button ie insert ballpoint pen in reset hole under the router, keep holding the reset button and turn on the router. Keep holding the reset button for about 12 seconds after you power on the router. Now you'll see that the power led has turned red signifying that the router is in crash recovery mode. When you enter the address 192.168.1.1 on your PC browser, you find the upgrade firmware page. Just browse to the downloaded firmware file and flash!
if this method doesnt work for you then only choose method 2 and dont forget to assign static address for ethernet
Method 2(worked for me):
Log into your router and
go to MANAGEMENT>>FIRMWARE UPDATE
or
and
choose downloaded file and
click on update Firmware
STEP 3: Applying Settings for ethernet
Setup Wizard>>next>>tick Automatically synchronize with Internet time server>>next>>select ethernet
select your protocol (for me PPPoE) and proceed accordingly to your settings
(for protocol and other Internet settings call your ISP, they can help you with this)
after applying settings put your ethernet cable to PORT 4 only and
Reboot
That's it!! You have done it 
NOTE:
1. If not getting connected, call your ISP and tell them to reset your mac id.
2. ServiceName cannot be changed and this will not affect your connection (I hope, this problem will be solved in next firmware version)
3. If you are not using 3G and Samba connection for usb, disable/delete those settings
Thank You Manoj and participants of this thread, your comments really helped me a lot..
I hope this will be useful for V2 and V1 owners 
