I just installed this update with no problems, but I did it by burning everything to a CD (the entire file and folder structure within the ZIP archive). The installer auto-played and the install went smoothly.
I called Avid, and actually got through to someone quickly, the guy emailed me a link to a working installer. I haven't tried it out yet, but I did upgrade to Avid Studio essentials with Avid 3D, Avid FX and Avid DVD by Sonic. They have a real good deal on that package right now.
Did the new upgrade fix that problem with the P2 card media going offline after a project is closed?