Why did the firmware 4.0.x update cause my ATI RG220 to stop working?

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Scenario:

Updating ATI FirePro\u2122 RG220 and RG220A Remote Workstation Graphics cards with firmware 4.0.0/4.0.1 causes loss of network connectivity to the host card.

You are still able to use the RG220(A) as a local graphics card by directly attaching a monitor but the remote functionality will not work.

Resolution:

Install firmware 4.0.2 which included a fix for this issue.

DO NOT install 4.0.0 or 4.0.1.