Not everyone has the latest and greatest and should not be criticized for that.
Why the initial scan was taking so long is hard to say. It could have something to do with the recent upgrades but most likely other issues as noted in the quotes below. If your drive is very large it takes longer of course.
Here are some quotes from Alsoft's site:
QUOTE
There are several issues that factor into the amount of time needed to run DiskWarrior.
If the disk has overlapped files, bad blocks, or the machine has low RAM, the time required to rebuild the directory could be longer than normal.
The size of the directory, the number files on the disk, the amount of memory in the computer, and the speed of the hard disk also effect the time frame for rebuilding the directory.
QUOTE
As long as the mouse cursor still moves during step 5, then the computer did not hang or freeze. DiskWarrior is still working on reading the directory of the disk.
Such slowdowns are usually the result of having bad blocks on the media. DiskWarrior is having trouble reading data from the locations on disk where the directory structures are stored.
You will also notice that an error count is kept at the end of the message. This feedback allows you to see that DiskWarrior is still working on reading data from the drive.
NOTE: This count does not increase at a regualr interval as disk errors are not distributed evenly across a drive.
Please let DiskWarrior run for as long as it takes. This can take quite a few hours but should eventually complete. On rare occasions, it might even be necessary to run this for a day or two.
Since the "speed reduced by disk malfunction" message indicates hardware-related issues, you will need to backup your files from the DiskWarrior Preview window (accessed from the DiskWarrior Report window) to another hard drive. Once you have a backup of your files, you will need to install a new hard drive to replace the damaged hard drive.