On firmware 10.40 and 43. When a L3 change is made within a OSPF area (ex add a new interface) my 425 in the area stops routing all OSPF and keeps flapping all neighbors between down and init. Even when the 425 is rebooted the issue comes back. The only way I have found to clear out the issue is to factory reset the switch, and even then when another change is made the issue comes back.
I have replaced the 425 with a Cisco switch and I can not replicate the issue on that so it looks to be an issue with the 425.
Have you tried 11.1? I upgraded all my sites to 11.1 to fix an 802.1x issue that was a huge problem for us. No issues so far. It has been my experience over the years that the beta firmwares are usually more stable than the "stable" firmware.
I have a lot of details in my other thread but basically the switch is ignoring eap starts from the client if the port fails to guest. We were getting 5-10% of our clients stuck on guest a day. The help desk either had to cycle the user's port or the users would need to manually unplug their IP phone and plug it back in to reset the port. No issues on 9.37 or 11.1.