As I can see from your log-file, the package is not completely unavailable
Jul 10 08:57:49 10.0.0.7 [mg0] <- CW from newcamd XXXXXX:XXXXX (171ms)
Jul 10 08:57:49 10.0.0.7 [mg0] 171 msec -- Thu Jul 10 08:57:49 2014
Jul 10 08:57:49 10.0.0.7 system: Cryptoworks caid: 0x0D96 pid: 0x0479
Jul 10 08:57:49 10.0.0.7 prov: 000004
Jul 10 08:57:49 10.0.0.7
cw0:0 7D 82 B3 B2 8E 5E 81 6D Jul 10 08:57:49 10.0.0.7
cw1:0 8F 97 65 8B F3 68 96 F1 The last 2 lines tell that your receiver sends requests to the server and receives the keys. This is not server issue that the keys are not received regularly. The other thing is that your CS is UNSTABLE and emulator is "hiccoughing". This is a problem of either firmware or emulator.
To downgrade EMU from 1.38 to 1.35, I need to know what is the firmware - Experimental 2010-07-21? Where did you get it? I suggest that 1) you have to upgrade your firmware, for example, by installing, say, OpenPli image from here
http://openpli.org/download/dm500hd/ or Domica image
www.domica.biz2) When you upgrade your image (firmware), read further instructions on the above forums how to install MgCamd 1.35(a)