Are you trying to update it through the same means as the OP from arcane? That won't work.
I think I might need to come up with a nice post detailing exactly what needs to be done..
I guess the question is; those that have succeeded, what method are they using?
I'm no n00b to loading and unloading OS's, but that's the only method I know to get the install to initiate, other than directly from the server.