It worked perfectly for me, very easy. Download to pc. Rename the file and make sure it's done correctly. Reboot holding x key down. select apply update.zip. Reboot when done.
For those of you who can't seem to get it done, it's not really a big deal this whole update except for what appears to be better power management. There might be bug fixes under the hood, time will tell. Visually, all I can see the following for those of you waiting for practical effects:
(1) Goggles is now preinstalled bloatware
(2) A lame News/weather app is preinstalled bloatware far better done by people who cared an iota about creating it (no status bar option for weather either)
(3) If you're desperate for live wallpapers, this has it
(4) The media gallery is much more improved and finally usable. Media player is still manure.
(5) Many of my apps now crash, especially X-Scope (it's the latest)
This might be the last update we get, though, if this is any indication what 7 months of progress brings. My guess is all the efforts are going into the upcoming Droid. I'm guessing the real benefit will come from those making new ROMs out of this update and we'll have a whole new set of them coming out, which will take the place of updates that usually would come out, as they did every month with the Storms, the Pres, etc. That's something to look forward to.