Thank you all. I am being extra careful here: When I plug in my phone, two drives come up: K and L. K is labeled "MOT". I am assuming L is the correct drive (the ext sd), and I just put it at the root there, right? I have my camera set up to save on the sd, and that is where all the photos are going (in the DCIM folder).
Thanks again for all the help.
This is what I did to update to .901 (and .902), but it's the same procedure. You've already done steps 1-3
1. On the phone go to Menu>Setting>Applications>Development and check "USB Debugging."
2. Plug phone into computer.
3. Press "Mass USB Storage" from the list of choices. Two drives will show up. One is MOT (Internal Storage) and the other is Removable Drive (SD-EXT).
4. Put the downloaded file in the root (ie main area) of SD-EXT (not Internal Storage). Just the Blur zip file.
5. Eject both MOT and Removable Drive and disconnect the phone from your computer.
6. Power phone down
7. Reboot into stock recovery (adb reboot recovery) by holding Power and Volume Up/Down at the same time.
8. Select "Recovery" by pressing Volume Down, then press Volume Up to initiate it.
9. When the robot appears, press both Volume keys in at the same time.
10. Select “apply update from sdcard” using the volume keys, then Power to initiate it.
11. Using the Volume keys, choose the file that you downloaded (above), press Power and let it load.
12. When the install is done, press Power. It'll reboot, but it'll be longer than normal (about 6 minutes)
The whole process, from moving the file into the SD-EXT card to phone rebooted is about 10 minutes. Of that, 3 minutes will be the phone extracting the files (Step 11) and 6 minutes for the install itself (Step 12). A long time to stare at your phone, I admit.