Perhaps I could come in on this one for a second, I know the bike very well I have one myself. For the benefit of the other guys helping out - The battery is hidden on these bikes, it's in the front section of the frame kind of banana shaped, the controller is hidden inside the other section.
If you wanted to upgrade to a higher voltage battery if would need to go outside of the frame unless the battery could be re-celled differently. The controller is also a problem as a higher voltage box would not fit in the frame either, so really you're stuck with 36v. I upgraded my machine with help from the guys on here to the popular KT setup with a LCD3 display and the bike performs really well. No problems with hills and an increase in speed to boot, it's a very capable bike.
As for the fault I'd still be inclined to believe it's the controller. Incidentally the controller/display set up are a matched pair, AFAIK they will only work together and they didn't perform well for me anyway hence I changed the lot and now all is well.