I am using periodic polling for the moment, and working around this for now, by retrying up to 10 times, every send message and every receive notification, which makes it very slow. These api calls fail intermittently with a 500 internal server error, but the same call then succeeds 6, 7 seconds later.
Sometimes the api calls work first time, sometimes, it works after 2 or 3 re-tries, and then sometimes, it may take 6 or 7 retries.
Totally unusable, but this is how I've worked around the problem for the moment.
Yahoo need to come back and tell us what is wrong. Anybody from Yahoo, can they please respond?