I had the same problem, and this is how I solved it. When the prompt "Existing blackberry software has been detected and must be closed before proceeding..." comes up, don't click "OK" or "Cancel" yet, but rather, disconnect your BB and shut down DM manually before you click "OK". After that, the update software will apply the update. Working fine for me now, hope this helps someone.
Last edited by L3stat; 07-01-2010 at 06:27 AM..
Reason: Minor edit.
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