Apple recently launched Xserve LOM Firmware Update 1.2 on its support page, an update that includes changes to the environment Lights-Out Management of the Xserves launched in early 2008.
The new firmware version fixes problems that caused frequent use of power and fan notifications. It is highly recommended for all users of the product.
More information about the update can be obtained here. It requires Mac OS X 10.5.6 or higher and weighs only 719KB.